30th January 2025

Stamp Duty Land Tax – Changes are Coming Once Again

Stamp Duty Land Tax (SDLT) – a tax which falls due to HMRC when purchasing property in England and Northern Ireland.

The Government’s Autumn Budget brought about changes for property acquisitions in England and Northern Ireland, which included the immediate increase of fees for investors and second homeowners.

 

Has this had any impact for first-time buyers?

Possibly, as the increase of SDLT for second time buyers/investors has perhaps freed up main home properties for First Time Buyers (FTB). However, the current relief for FTB is to change on the 01 April 2025 and buyers need to be aware of these changes and if possible, take advantage of the current SDLT payable up to 31 March 2025.

 

Discount up to 31 March 2025

You’ll pay:

  • no SDLT up to £425,000
  • 5% SDLT on the portion from £425,001 to £625,000

If the price is over £625,000, you cannot claim the relief for First Time Buyers.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

  • 0% on the first £425,000 = £0
  • 5% on the remaining £75,000 = £3,750
  • total SDLT = £3,750

 

Change for FTB Discount from 1 April 2025

You’ll pay:

  • no SDLT up to £300,000
  • 5% SDLT on the portion from £300,001 to £500,000

If the price is over £500,000, you cannot claim the relief.

Example

You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

  • 0% on the first £300,000 = £0
  • 5% on the remaining £200,000 = £10,000
  • total SDLT = £10,000

 

Rates if you are not a UK Resident

If you are not present in the UK for at least 183 days (6 months) during the 12 months before your purchase, you are ‘not a UK resident’ for the purposes of SDLT.

You will usually pay a 2% surcharge if you are buying a residential property in England or Northern Ireland.

Check the rules for non-UK residents to see whether you can claim relief for the 2% surcharge www.gov.uk/stamp-duty-land-tax

 

Standard Residential Purchases

Changes from 01 April 2025 will also affect the SDLT rates for standard residential purchasers for UK residents replacing their main residence.

The changes will be as follows:

For Main Residences:

Up to £125,000: 0%

£125,001 to £250,000: 2%

£250,001 to £925,000: 5%

£925,001 to £1.5 million: 10%

Above £1.5 million: 12%

Property purchases will see an increase of £2,500 from the current tax payable up to 31 March 2025.

 

As detailed in the 2024 Autumn Budget, the current rate for second homeowners and investment buyers will fall into the following SDLT percentage tax:

Up to £125,000: 5%

£125,001 to £250,000: 7%

£250,001 to £925,000: 10%

£925,001 to £1.5 million: 15%

Above £1.5 million: 17%

 

It is prudent to ensure that you fully understand the SDLT fees payable when purchasing property in England and Northern Ireland, whether you are purchasing your first main residence or are a second homeowner.

SDLT will be payable for non-individual (companies) residential property purchases, calculated at different rates.

For conveyancing enquiries, please do not hesitate to contact our team for professional and friendly discussions. Email info@bussmurton.co.uk or call 01892 510 222.

Paula Savage

Paula Savage
Senior Conveyancer