In the recent Autumn Budget, Chancellor Rachel Reeves announced an immediate stamp duty hike impacting landlords and homeowners purchasing additional properties.
What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax (SDLT) is a tax applied in England and Northern Ireland when you purchase property or land above a certain price. It is typically paid to HM Revenue and Customs (HMRC) by the buyer of the property. The tax rate depends on the price of the property and whether it is residential, non-residential, or mixed-use.
What changes were announced to Stamp Duty Land Tax in the Autumn Budget 2024?
Effective immediately, the stamp duty surcharge, previously set at 3% for additional properties, will increase to 5%. This increase also applies to limited companies purchasing residential properties. Additionally, the single rate of Stamp Duty Land Tax (SDLT) on residential purchases by corporate bodies exceeding £500,000 will rise from 15% to 17% as of October 31, 2024.
No Changes to Future SDLT Adjustments
Some SDLT changes, introduced by the previous government, will proceed as planned and were not altered in the recent budget. These changes, effective from March 31, 2025, include:
- The nil rate threshold for dwellings, currently £250,000, will revert to £125,000.
- For first-time buyers, the nil rate threshold will decrease from £425,000 to £300,000.
- The maximum purchase price eligible for First-Time Buyers Relief, now £625,000, will return to £500,000.
These adjustments mean that from April 2025, the SDLT rates will be as follows:
| Property or Lease Premium | SDLT Rate |
| Up to £125,000 | Zero |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Contact Specialist Stamp Duty Land Tax Advisors
With these changes, property buyers, especially investors and corporate purchasers, should prepare for the revised SDLT landscape. If you have any questions about how these changes may impact your property plans or would like assistance navigating the new SDLT rates, please don’t hesitate to contact Johnston Wood Roach Specialist Chartered Accountants and Tax Advisors in Hampshire.
