Autumn Budget and SDLT Payments of Purchasers
The Autumn Budget 2024 delivered by Chancellor Rachel Reeves made substantial changes to the land and property landscape affecting an array of purchasers, sellers and investors with effect from 31 st October 2024.
The budget introduced higher rates of Stamp Duty Land Tax (SDLT). Those most notably affected by these changes will be purchasers of additional residential properties or buy-to-let properties as the respective SDLT rates have increased by 2%. First Time Buyers and Companies who wish to purchase residential property have also been impacted by these changes.
We understand that it can be difficult to gauge and anticipate the SDLT payable on a property that you are interested in purchasing due to all the changes which have been implemented recently. We have outlined the new SDLT rates payable on single residential properties (and the limitations on first time buyer-relief for single residential properties), additional residential properties, company acquisitions which include residential properties over £500,000 below.
Single Residential Properties
The general SDLT rate for a single property remains unaffected up to 31 st March 2025. The SDLT rates to be applied in these circumstances are as follows:
Property Value or Lease Premium | SDLT Rate |
£250,000 or less | Zero |
The next £675,000 (the portion from £250,001 to £925,000) | 5% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
The remaining amount (the portion above £1.5 million) | 12% |
First Time Buyers
The SDLT relief for first time buyers have increased to £425,000 (though this relief will be significantly reduced from 1st April 2025). 5% SDLT will be applied on the value of the property which is between £425,001 - £625,000.
If the purchase price is in excess of £625,000 the first-time buyer will not get any relief and must pay the SDLT rates for a single property (outlined above).
Additional Residential Properties
Purchasers of additional residential or residential properties are amongst those most impacted by the Autumn Budget reforms. Each band of SDLT have increased by 2% with effect from 31 st October. Now the SDLT rates for additional residential properties up to March 2025 are as follows:
Property Value or Lease Premium | SDLT Rate |
£250,000 or less | 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% |
Corporate Purchases
From 31 st October 2024 the single rate of SDLT increased from 15% to 17% for residential property with a value of more than £500,000 if purchased by a company or corporate entity.
At P.A. Duffy & Co. we understand the complexities involved in property transactions, particularly in light of the new changes to the SDLT payable on properties. Our expert conveyancing team are here to help you through every step of your property transaction, act in your best interest and advise you on your SDLT liability.