ICYMI: SDLT Changes in Labour’s Autumn Budget 2024.

The latest Budget introduces higher Stamp Duty Land Tax (SDLT) rates for individuals with multiple properties and corporate buyers. Effective from 31 October 2024, these changes will also adjust First-Time Buyer Relief starting April 2025, impacting future property purchases and planning. In this article, we investigate the changes in more detail.

People who already own at least one property are to face higher rates of Stamp Duty Land Tax (SDLT) if they buy a second property. The additional SDLT rate has risen from 3% to 5% for completions on or after 31 October 2024.

Corporate entities, such as companies and partnerships, now face a 2% hike on SDLT for residential property purchases over £500,000, raising the rate from 15% to 17% as of 31 October 2024. You can find more information on our commercial services here.

The general SDLT rate remains unaffected by these changes. Until 31 March 2025, no SDLT is due on property purchases up to £250,000. Beyond this threshold, SDLT starts at 5%, scaling up based on price bands (5% for amounts between £250,001 and £925,000, 10% from £925,001 to £1.5 million, and 12% for amounts over £1.5 million).

Starting from 1 April 2025, SDLT thresholds will return to the old rates, beginning at 2% for properties priced from £125,001, with existing rates applying for purchases over £250,000.

First-Time Buyer Relief is also set to change on 1 April 2025. Until 31 March 2025, first-time buyers pay no SDLT up to £425,000, followed by a 5% rate up to £625,000, with no relief if the purchase price exceeds £625,000. After 1 April 2025, the zero-rate limit will reduce to £300,000, with 5% applicable for properties priced between £300,001 and £500,000. No relief will be available for purchases over £500,000. You can find more information on our conveyancing services here.

Managing the complications of a property transaction can be challenging for both individuals and businesses at the best of times but especially now with recent changes to SDLT. The experienced conveyancing team at Marsons Solicitors is here to guide you through the process. Contact a member of our team here to discuss how we can assist with your property needs.

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