Key changes announced
Following the Labour Government’s first budget since 2010, significant changes to Stamp Duty Land Tax (SDLT) have been announced in the Autumn Budget 2024, effective from 31 October 2024.
What is Stamp Duty Land Tax?
SDLT is an upfront cost on the purchase of housing or land in England:
- It affects properties that are either freehold or leasehold
- The tax is calculated based on purchase price thresholds
- The fee is due within 14 days after completion
- Different rates apply depending on buyer status and property type
- The tax impacts both domestic and commercial properties
Increased surcharge for additional properties
The Chancellor has revealed a boost in the SDLT surcharge, raising it from 3% to 5% for:
- Second homes
- Buy-to-let properties
- Company purchases of residential property
New rates for additional properties (effective 31 October 2024)
- Up to £250,000: 5%
- £250,001 to £925,000: 10%
- £925,000 to £1.5 million: 15%
- Over £1.5 million: 17%
Standard rate changes from 31 March 2025
The temporary increase in the threshold, implemented in September 2022, is set to expire as scheduled on 31 March 2025. No extension was announced in the Budget.
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Over £1.5 million: 12%
Changes to first time buyer relief
From 31 March 2025:
- The limit will revert to £300,000, down from its current level.
- Maximum eligible purchase price reduced to £500,000 (from current £625,000)
What are first time buyer rates? (effective 31 March 2025)
- Up to £300,000: 0%
- £300,001 to £500,000: 5%
Example
A first-time buyer obtaining a house worth £350,000:
- Current position: No SDLT payable
- Position after 31 March 2025: £2,500 SDLT payable
Comment
SDLT payment must be given to HM Revenue & Customs when purchasing property or land in England. The amount payable is calculated as a percentage of the purchase price, with various rates applying depending on:
- Whether the house serves as your principal residence
- Your buyer status (e.g., first-time buyer)
- Whether you own other properties
- Whether the buying of property is conducted by an individual or company
Comment
We advise you review any planned property purchases since these changes have been announced and then think about completion timing to enhance SLDT’s position, in order to ensure reliefs and exemptions are property claimed we advise you to contact a conveyancer at your earliest convenience.
How can we help?
Ash Simpson is an Associate & Licensed Conveyancer in our expert Residential Conveyancing team.
If you have any queries in relation to this article, please contact Ash or another member of the team in Derby, Leicester, or Nottingham to discuss your circumstances.
Please call 0800 024 1976 or contact us via our online form.
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