Autumn’s Mini Budget: What You Need to Know!

05 October 2022


Chancellor Kwasi Kwarteng spent Friday morning in the House of Commons announcing five new key targets that are planned to come into play in Britain’s "new era." 

Kwarteng has outlined a series of tax cuts and economic measures that are expected to help boost growth.

The five main measures announced in the mini-budget are:

  • A basic rate cut by 1p to 19p from April 2023 for Income Tax
  • A 1.25% rise to be reversed for National Insurance from November 2022
  • Cap limiting payouts scrapped for bankers’ bonuses
  • Planned rise from 19% to 25% to Corporation Tax to be scrapped
  • Stamp Duty to be cut with no duty on the first £250,000 of any property, and no duty on first-time buyers’ homes on the first £425,000

 

For movers, the mini-budget’s biggest takeaway is the cut of Stamp Duty. Last seen during the peak of Covid-19, we saw Stamp Duty cut for homes up to £125,000 and for first-time buyers for homes of up to £300,000.

The increase of the Stamp Duty cut will enable a new sea of potential buyers to enter the market and secure their next home, all in the hope of curbing a crash towards the end of 2022.

Kwarteng told MPs that “The steps we’ve taken today mean that 200,000 more people will be taken out of paying stamp duty altogether” – promising light in the future of the UK's housing market.

Rightmove’s housing expert, Tim Bannister, said that though this change could potentially lead to “unseasonal price rises over the next few months”, the permanent change may mean that the increase in demand will be slower than when the cut came into temporary play.

For now, we are waiting expectantly for the new cabinet and new prime minister to enact all of these new legislations and are excited to see just how successful these will be to help the finances of Britons.

Are you thinking of taking advantage of the new Stamp Duty cut? Why not get in touch with one of our expert agents today and sign up for our property alerts to start your first step in moving today?