Legal News | 5.11.24
Residential Stamp Duty Land Tax (SDLT) changes in the recent Autumn Budget
If you already own another property and are liable to pay higher rate SDLT, the additional rate of SDLT has increased for completions on or after 31 October 2024 from 3% to 5%.
The good news is, according to gov.uk guidance, if you have exchanged on or before 30 October 2024, even if your purchase completes after the date the changes have been brought in, you will still pay the previous 3% rate. Any matters that have not yet exchanged will attract the new rates.
There has also been a 2% increase to the rates payable by corporate bodies (e.g. companies and partnerships) in respect of residential purchases where the purchase price is more than £500,000. From 31 October 2024, the rate payable in these circumstances will be 17% rather than the previous 15%.
The standard rate of SDLT has not been affected by the changes announced within the Budget. This means, up until 31 March 2025 there will be zero SDLT payable up to £250,000. For purchases over £250,000 the SDLT rate begins at 5%, and increases cumulatively according to various price bands (any amount between £250,001 and £925,000 at 5%, between £925,001 and £1.5 million at 10%, and any amount over £1.5 million at 12%).
Unless further changes are announced, the bands will then change from 1 April 2025, where SDLT will start to be payable for purchases of £125,001 or higher at a rate of 2%. The rate will then be payable in line with current percentages from £250,001 onwards.
The First Time Buyer Relief bands will also change from 1 April 2025. Under the current rules (applicable up until 31 March 2025), First Time Buyers will pay no SDLT up to £425,000, and then will pay 5% SDLT up to £625,000. The relief cannot be claimed if the purchase price is over £625,000.
From 1 April 2025, these bands will decrease, meaning First Time Buyers will pay no SDLT up to £300,000, with 5% payable between £300,001 to £500,000, and no relief available for purchases where the price is over £500,000.
If you are not a UK resident for SDLT purposes, you will also usually pay an additional 2% surcharge.
If you are looking for a conveyancer to handle your sale or purchase, please contact our Residential Property team at property@wansbroughs.com | 01380 733367.
