A reminder – Upcoming changes to Stamp Duty Land Tax
Stamp Duty Increase
Following Rachel Reeves’ first Labour budget since 2010 Stamp Duty Land Tax quickly became a topic of conversation for many.
Our Head of Property Mark Laird issues a reminder to all about the upcoming changes to Stamp Duty and how they affect your purchase of a property after 31 March 2025.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax payable if you buy a property or land over £250,000.00 in England and Northern Ireland. Different rules also apply to first time buyers, purchasers who already own land and purchasers who are not resident in the UK.
What is the change?
The current threshold for paying SDLT on a purchase was always intended to be temporary. We now know the threshold will revert back to £125,000.00 from 1 April 2025~From 1 April 2025 the follow rates will apply:
- Properties priced at £125,000 will now have to pay 3% SDLT
- Properties priced in the region of £125,000 – £250,000 will have to pay 5% SDLT
- Properties priced in the region of £250,000 – £925,000 will have to pay 8% SDLT
- Properties priced in the region of £925,000 – £1.5 million will have to pay 13% SDLT
- The remainder (if any) will be subject to SDLT at 15%
For first-time buyers, the exemption threshold will drop from £425,000 to £300,000.
How will this affect me?
As with previous Stamp Duty holidays, the increase is likely to cause an increase in demand for conveyancing services. Given that the average purchase will already take approximately three months from receipt of the draft contract papers from the seller’s solicitor potential buyers should note that it is now unlikely they will be able to complete before the new SDLT comes into force.
Residential Property & Conveyancing Team
At Morrish Solicitors each of our specialist property lawyers has decades of experience in assisting with purchases of first-time buyers and assisting clients in identifying the correct level of SDLT payable for their purchase.
To find our more about our residential property and conveyancing services please call us on 033 3344 9600 or email [email protected].
Author: Mark Laird, property.
