Stamp Duty changes
Stamp Duty changes
Stamp Duty Land Tax Autumn Budget – What changed and how it affects your residential property purchase?
Stamp Duty Land Tax (SDLT) is raised on purchases of property and is payable at completion.
Recently the government introduced changes to the rates and lowered the thresholds at which the tax is calculated.
These changes have particularly affected first time buyers, those replacing their main residence and second property purchases.
First time buyers
First time buyers have now found themselves limited to the maximum value of property they can acquire at discounted rates 0% and 5% SDLT. The maximum value is capped at £625,000 until 31st March 2025 and reducing to £500,000. If you are purchasing your first property costing more than these amounts you will not qualify for first time buyer discount.
The newly revised rates and bandings for first time buyers are shown below:
| Effective from 1st April 2025: | Currently up to 31st March 2025: | ||
| Up to £300,000 | 0% | Up to £425,000 | 0% |
| £300,001 to £500,000 | 5% | £425,001 to £625,000 | 5% |
Main residence
When replacing your main residence, the 0% SDLT threshold will be reduced from £250,000 to £125,000 and a new 2% rate introduced from £125,001 to £250,000. This will result in more property transactions being affected and making it more expensive for you as a buyer overall.
The changes are as follows:
| Effective from 1st April 2025: | Currently up to 31st March 2025: | ||
| Up to £125,000 | 0% | Up to £250,000 | 0%
|
| £125,001 to £250,000 | 2% | ||
| £250,001 to £925,000 | 5% | £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% | £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% | Over £1.5 million | 12% |
Second and additional residential property
Where you buy a second property the increased SDLT surcharge of 5% applies to the entire purchase.
Non-UK resident surcharge
If any buyer has not been a resident in the UK for 183 days out of the last 12 months at the date of completion, a 2% surcharge on the entire purchase price will be payable in addition to SDLT and the second / additional property surcharge (where applicable).
As an individual considering a residential property purchase you need to be aware of these changes because the cost at completion could be significantly more than initially expected.
At Anthony Harris & Company, we provide an SDLT calculation with our cost estimates at the outset.