The Autumn budget announced changes to Stamp Duty Land Tax (SDLT). The most immediate changes affect transactions to which the higher rate applies and certain purchases by corporate bodies. The higher rate applies when you purchase an additional property, which is not replacing your main residence. The higher rate has increased from 3% to 5%. The SDLT rate for corporate bodies buying residential properties for more than £500,000 also rose from 15% to 17%. However, the changes do not apply to your purchase if you exchanged by/on 30 October 2024.
Further SDLT changes come into play on 1 April 2025, which will increase SDLT rates. Currently SDLT is not payable on the first £250,000, but this will drop to £125,000. In addition, first time buyers do not pay SDLT on the first £425,000, but this will drop to £300,000. These changes will affect purchases completing on or after 1 April 2025.
Priscilla Macleod, Associate, Private Client Property
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