Jeremy Hunt has delivered his all-important Autumn Budget statement to MPs in the House of Commons today (November 17) where he unveiled a change to the stamp duty tax cut. The Chancellor of the Exchequer, who was appointed on October 14 to take over from his predecessor Kwasi Kwarteng, addressed tax hikes and spending cuts in a bid to tackle soaring inflation and reduce the cost of living whilst supporting the economy on a path to growth.
The “tough but necessary decisions" revealed on Thursday by Prime Minister Rishi Sunak's Chancellor will attempt to boost the economy as the UK has now entered into a recession. It comes after a state of market turmoil following the former Prime Minister Liz Truss and Chancellor Kwasi Kwarteng's mini budget in September.
Figures published on Wednesday (November 16) showed that inflation hit 11.1 per cent in October, its highest rate for 41 years and up from 10.1 per cent in September, which Mr Hunt blamed on the Covid-19 pandemic and Vladimir Putin’s war in Ukraine.
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Amid the announcements the Chancellor has revealed he will now reverse Kwasi Kwarteng's stamp duty cut which was announced in the mini budget.
In September, changes to stamp duty tax were announced which saw the threshold double 'permanently' from £125,000 to £250,000 , and raised for first time buyers from £300,000 to £425,000.
This meant that homeowners only had to pay stamp duty land tax when buying properties that cost more than £250,000 and for first-time buyers, the tax would only be applied when purchasing homes that cost more than £425,000.
However in the Autumn Budget, Jeremy Hunt has now announced a reduction to the stamp duty threshold, with the current figures ending in March 2025.
From 31 March 2025, the stamp duty cuts announced in the Growth Plan will now be time-limited. After this date, the threshold will be reversed back to £125,000 for homeowners and £300,000 for first-time buyers.
The HM Treasury says: "This is to help the jobs and firms that rely on the housing market through the current challenges, while strengthening the public finances in the longer term."
Tweeting live amid the Autumn Budget announcements, Martin Lewis explained: "Kwasi's stamp duty tax cut will be reversed in 2025. So while currently you pay no stamp duty until property costs £250,000 (£400,000 for first time buyers) will go back to £125,000 (and £300,000 for first time buyers)."
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