Stamp Duty Land Tax (SDLT) is a tax paid when you buy a property or land over a certain price in England and Northern Ireland*.
The current stamp duty rates (September ’22 to 31st March ’25) on a standard residential purchase of a freehold property, for UK resident individual(s), replacing a main residence are:
· 0% up to £250,000
· 5% above £250,000 and up to £925,000
· 10% above £925,000 and up to £1,500,000
· 12% above £1,500,000
However, it is currently expected that as from 1st April 2025, the current 0% Stamp Duty threshold will decrease from £250,000 to £125,000, and the previous 2% threshold will be reintroduced. The rates would then be:
· 0% up to £125,000
· 2% above £125,000 and up to £250,000
· 5% above £250,000 and up to £925,000
· 10% above £925,000 and up to £1,500,000
· 12% above £1,500,000
In addition to the standard rate changes above, it’s also expected that:
· The first time buyers nil rate, which is currently up to £425,000, will return to the previous level of £300,000.
· The maximum purchase price for which First-Time Buyers Relief can be claimed will return to the previous level of £500,000, from £625,000.
So what does this mean if you’re looking to buy a new property or piece of land in the next few months?
For those people considering a purchase of up to £250,000, these expected changes could mean a buyer having to find additional funds for their SDLT if they wait to look for a new property until the new year.
If you act now, and complete before the rate change comes into effect, a buyer buying at a price between £125,000 and £250,000 could realise a significant saving of £2,500 on their SLDT. With property transactions currently taking around 16 weeks**, now is the time to act if you want to avoid the additional costs.
This information is correct as at 14th October 2024. It is possible that the Government may make further changes to the Stamp Duty rates in the Autumn Budget on 30th October 2024.
*The tax is different if the property or land is in Scotland or Wales.
**Average transaction times vary and it may take longer to complete at busy times, such as stamp duty deadlines and Christmas, or if the property is leasehold.
To discuss expected changes to stamp duty thresholds or any Conveyancing advice, please contact us at email: getmoving@ramsdens.co.uk or call us on tel: 0808 168 5643
The above article is for illustrative purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any part of the information given.