The Government's Budget on 30 October 2024 announced important changes to Stamp Duty Land Tax (SDLT), which will impact property buyers across the country. Sophie Spicer, Conveyancing Assistant in our Residential Property team, explains the new SDLT rates and upcoming adjustments and how they affect property purchases.
What is Stamp Duty and Tax (SDLT)?
SDLT is a tax which is paid by the buyer of a property on completion. The amount of SDLT payable depends on several factors, including (but not limited to) whether a buyer is:
- A UK resident
- Buying a property as an individual or company
- A first-time buyer
- Replacing a main residence
- Buying additional property
Immediate Increase for Additional Property Purchases
The Government has increased the SDLT rates for those buying additional properties. This increase is effective immediately. The previous and new SDLT rates are detailed in the table below:
|
Property Selling Price |
Previous SDLT Rate |
Current SDLT Rate |
|
Up to £125,000 |
5% |
5% |
|
£125,001 to £250,000 |
5% |
7% |
|
£250,001 to £925,000 |
10% |
10% |
|
£925,001 to £1.5 million |
15% |
15% |
|
More than £1.5 million |
17% |
17% |
Further SDLT Changes Coming in April 2025
Buyers should also be aware of further SDLT changes which are coming into effect on 1 April 2025. These changes were not discussed in the Budget as they were changes introduced by the previous Government, which are now due to expire. The changes are as follows:
- First-time buyers currently pay no SDLT when buying a property worth £425,000. This threshold will drop to £300,000.
- First-time buyers currently pay a reduced SDLT rate when buying a property worth between £425,001 and £625,000. The higher amount will return to the previous level of £500,000.
- Currently, no SDLT is payable when buying a property worth £250,000 or less. This threshold will return to the previous level of £125,000.
The SDLT rates effective from 1 April 2025 for non-first-time buyers and first-time buyers are outlined below:
For non-first-time buyers:
Property Selling Price |
Previous SDLT Rate |
Current SDLT Rate |
Up to £125,000 |
0% |
0% |
£125,001 to £250,000 |
0% |
2% |
£250,001 to £925,000 |
5% |
5% |
£925,001 to £1.5 million |
10% |
10% |
More than £1.5 million |
12% |
12% |
For first-time buyers:
Property Selling Price |
Previous SDLT Rate |
Current SDLT Rate |
Up to £300,000 |
0% |
0% |
£300,001 to £425,000 |
0% |
5% |
£425,001 to £500,000 |
5% |
5% |
*If you are a first-time buyer purchasing a property for over £500,000, you will not be eligible for relief and need to follow the rates as per non-first-time buyers.
If you are considering buying a property, you can calculate SDLT using the Government's free SDLT Calculator. Consulting with an accountant or tax advisor for professional advice is also recommended to explore SDLT reliefs.
How We Can Help
If you are considering buying a property and are seeking legal representation, our Residential Property team is here to provide expert legal advice and support throughout your property purchase process. Please contact Sophie Spicer on 01258 459361, or via sophie.spicer@blanchardsbailey.co.uk
Please also visit our Residential Property webpage for more information.
So, how can we help?
Whatever your requirements, our team is standing by.
Call us today on
01258 459361