The Chancellor has today announced a ‘mini-budget’ which is outlined within The Growth Plan 2022 document as found on the HMT website here.
There were not many VAT and SDLT specific updates in the mini-budget, but those which were announced have been detailed below for you.
Increases to SDLT thresholds
Changes to the SDLT thresholds for residential property have been announced and are applicable from 23 September 2022:
Rates for a single property
| Before 23/09/22 | SDLT rate | 23/09/22 onwards | SDLT rate |
| Up to £125,000 | Zero | Up to £250,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% | ||
| The next £675,000 (the portion from £250,001 to £925,000) | 5% | The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% | The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% | The remaining amount (the portion above £1.5 million) | 12% |
Buying your first home
| Before 23/09/22 | SDLT rate | 23/09/22 onwards | SDLT rate |
| Up to £300,000 | Zero | Up to £425,000 | Zero |
| The next £200,000 (the portion from £300,001 to £500,000) | 5% | The next £200,000 (the portion from £425,001 to £625,000) | 5% |
| If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. | N/A | If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. | N/A |
N.B. As SDLT is devolved in Scotland and Wales, the Scottish and Welsh Governments will receive funding to allocate as they see fit.
Investment Zones
The following interventions are under consideration in respect of Investment Zones:
- Lower taxes – business in designated sites will benefit from time-limited tax incentives.
- Stamp Duty Land Tax – a full SDLT relief for land and buildings bought for use or development for commercial purposes, and for purchases of land or buildings for new residential development.
How these will be implemented and assessed in practise however has not yet been outlined and we await further information on this.
VAT-free shopping for overseas visitors
The government will introduce a digital VAT-free shopping scheme in Great Britain. The scheme will enable non-UK visitors to Great Britain to obtain a VAT refund on goods bought in the high street, airports and other departure points where exported from the UK in their personal baggage.
A consultation will be launched to gather views on the approach and design of the scheme.
We trust the above has provided a clear update on the VAT and SDLT specific elements of the mini-budget and encourage readers to contact our free VAT helpline with any questions you may have.
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