The introduction of the Autumn Budget has implemented key changes to Residential Stamp Duty Land Tax (‘SDLT’). These changes will have a significant impact on both individuals and businesses that are looking to buy property.
What is Stamp Duty Land Tax?
SDLT is a tax payable to HM Revenue & Customs (subject to thresholds being met) when purchasing land and property within England and Wales. SDLT is calculated as a tiered percentage of the purchase price. Other considerations directly impact the rates payable. This includes (but is not limited to) whether it is a “main residence” or a “second home”, whether the Buyer is a UK resident, or if they are a First Time Buyer.
Autumn Budget Changes to SDLT – a Key Summary
Please refer to the tables below showing some of the recent changes that have been made:-
Stamp Duty Thresholds - Individuals
Higher rates of SDLT for purchases of additional property
Transactions pre-budget (up to 30th October 2024)
Relevant consideration | Percentage |
|---|---|
Up to £250,000 | 3% |
So much as exceeds £250,000 but does not exceed £925,000 | 8% |
So much as exceeds £925,000 but does not exceed £1.5 million | 13% |
The remainder (if any) | 15% |
Transactions on or after 31st October but before 1st April 2025
Relevant consideration | Percentage |
|---|---|
Up to £250,000 | 5% |
The next £675,000 (the portion from £250,001 to £925,000) | 10% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 15% |
The remaining amount (the portion above £1.5 million) | 17% |
Transactions from 1st April 2025
Relevant consideration | Percentage |
|---|---|
Up to £125,000 | 5% |
The next £125,000 (the portion from £125,001 to £250,000) | 7% |
The next £675,000 (the portion from £250,001 to £925,000) | 10% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 15% |
The remaining amount (the portion above £1.5 million) | 17% |
As you will note, the thresholds by which SDLT are assessed have been tightened, and the rates applicable, increased.
Time will only reveal what impact such proposals have on the property market, but we suspect such news will come as a bitter disappointment to both aspiring and established buy-to-let investors.
