SDLT rates for those acquiring additional properties through their Limited Company rose on 31st October 2024. Those rates will be going up again on the 1st April 2025. Some interesting worked examples are set out below:-
Imagine you wanted to buy a second Residential home through your Company for £300,000.
Example 1: Purchasing a property pre-budget (i.e. prior to 31st October 2024)
Previously, prior to the Autum Budget, £11,500 in SDLT would have been payable.
Example 2: Purchasing a property between 31st October 2024 to 31st March 2025
Following the Autumn Budget, £17,500 in SDLT is now payable, a difference of £6,000(!)
Example 3: Purchasing a property post 1st April 2025
From April next year, £24,000 in SDLT will be payable. If we compare this to the pre-budget rate this will now set you back an additional £12,500; doubling the amount previously payable(!)
Have you already exchanged contracts?
If you exchanged contracts before or on 30th October 2024, then you will be ‘locked in’ at the pre-budget rate and will not be required to pay the higher SDLT surcharge (provided there have been no material variations to the Sale Agreement).
However, if you did not exchange until after 31st October, you will be liable to pay the higher SDLT surcharge on completion.
