The new Chancellor Kwasi Kwarteng has today announced a number of new measures that will come into force to help counter the cost of living crisis facing the UK. Changes have also been made to stamp duty - if you’re looking to buy a home the amount of stamp duty you’ll now pay could be significantly lower.

A summary of the changes that have been made:

Stamp Duty

The previous rates of stamp duty for first time buyers was as follows:

0% if your home was worth up to £300,000

5% if your home was worth £300,000 to £500,000 but only on the value above £300,000.

If the property you were buying was worth over £500,000, you would have paid the standard rates of Stamp Duty and wouldn’t have qualified for first-time buyer’s relief.

For everyone else the rates were:

£0 – £125,000 = 0 per cent

£125,001 – £250,000 = 2 per cent

£250,001 – £925,000 = 5 per cent

£925,000 – £1,500,000 = 10 per cent

£1,500,000 and over = 12 per cent

What do the changes mean for you?

For first time buyers:

0% if your home is worth up to £425,000 - previously this was £300,000

If the property you are buying is worth over £625,000, you won’t have to pay the standard rates of Stamp Duty and can still qualify for first-time buyer’s relief - the previous figure was £500,000.

For everyone else:

0% if your home is worth up to £250,000 - previously this was £125,000

Reduction in National Insurance

The previous Chancellor, Rishi Sunak increased national insurance (NI) by 1.25% to help fund social care and the NHS - this came into effect in April 2022. This will now be scrapped from November 2022.

What do the changes mean for you?

If you earn:

£20,000 - there is an annual saving of £93

£30,000 - there is an annual saving of £218

£50,000 - there is an annual saving of £468

£80,000 - there is an annual saving of £843

Income Tax

A 1p drop in income tax which was planned for 2024 has been brought forward to April 2023.

What do the changes mean for you?

If you earn:

£20,000 - there is an annual saving of £74

£30,000 - there is an annual saving of £174

£50,000 - there is an annual saving of £374

£80,000 - there is an annual saving of £674

Energy Bills

Liz Truss has already announced that the energy price cap (the price suppliers can charge for variable rates for gas and electricity) will be capped at £2,500 from October - this was due to be £3,549. Whilst for some households prices will have doubled in a year, this does offer some much needed rest bite.

What do the changes mean for you?

The new price cap will save the average household £1,000 over a 12 month period.