Martin Lewis has highlighted how Stamp Duty and other tax changes will affect millions of households in the UK. The Money Saving Expert founder has been keeping his fans up-to-date with the latest news as the cost of living crisis worsens.
The finance guru is known for his switching and money-saving tips, but recent events have left even him at a loss on advising those who are struggling, as reported by Liverpool Echo. With the cost of living crisis worsening, many of us are trying to find ways to save money where we can as food and energy prices soar.
On Friday Chancellor Kwasi Kwarteng unveiled a "new growth plan" - part of which will see Stamp Duty cut. The nil rate band will be doubled from £125,000 to £250,000.
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This means 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all - and the standard buyer in England will save £2,500, according to Gov.uk. Mr Lewis said many fans have asked him if they will still get the new rates if they have exchanged homes but not "completed". In a tweet, he replied: "In general yes, stamp duty is crystallised at completion (though there can be some exceptions - check with your solicitor)."
Mr Lewis has also tweeted an "explainer" video to explain how exactly people will be affected by Stamp Duty, National Insurance and Income Tax. Anyone buying a house worth between £250,000 and £900,000 will pay a 5% Stamp Duty, he said. Using a £300,000 property as an example, Mr Lewis said: "You pay no Stamp Duty on the first £250,000, you pay 5% on the remaining £50,000, which is £2,500. Yesterday, you would have paid £5,000."
He also said first time buyers purchasing a property worth up to £650,000 will not pay any Stamp Duty on the first £425,000 - compared with £300,000 previously. On Income Tax, he said, the basic rate has dropped to 19% (from 20%). People currently start paying Income Tax when their earnings reach £12,570, though this may change when the budget is announced next year, Mr Lewis said.
This means anyone earning this amount or more will have more take home pay. Though, he added: "For anyone earning £50,000 and over, you don't really get any more gain. The gain is really on the income between £12,570 and £50,000".
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