Stamp Duty Land Tax (SDLT) is payable to HM Revenue and Customs when you purchase property or land in England or Northern Ireland. There are various factors that affect how much you will have to pay, including whether you are:
- A UK resident
- A first-time buyer
- Purchasing an additional property
- Acting through a company
Since September 2022, homeowners have benefitted from a temporary relief in SDLT, which is due to come to an end on 31st March 2025. Therefore, any transaction that completes after this date will be affected by the change.
From 1st April, SDLT will go back to being charged at the standard rates, and it is important that anyone purchasing a property is aware of how this will affect them.
The standard rates are as follows:
| Property or lease value | SDLT rate |
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| 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% |
It is important to note that the buyers who may be most affected are those purchasing properties between £125,000 and £250,000, as they would have previously been eligible for a 100% relief on SDLT.
Those purchasing properties at a higher value will be subject to an increase in their SDLT liability due to the re-introduction of the lower bracket, being the 2% of £125,001 to £250,000.
There will also be changes to the relief available for first-time buyers, who will now be able to purchase a home of up to £300,000 in value without being liable for SDLT. If the price exceeds this, SDLT will be payable at 5% on the value between £300,001 and £500,000. If the property value exceeds £500,000, no relief will be available.
There are special rates and different rules in circumstances where a buyer:
- Already owns a property
- Is not a UK resident
- Is acting under a corporate body
- Is dealing with a shared ownership property
- Is making multiple purchases
It is imperative that appropriate advice is obtained. It may be appropriate to instruct an accountant in these circumstances.
How Can We Help?
Thinking of moving house? Our team can help – we’re CQS accredited and committed to making the moving process as smooth as possible. When you instruct Hatchers to assist with your purchase, you will also have the ability to include the services of our third-party advisors, Stamp4, in respect of your SDLT liability.
Call our team today on 01743 248545 to get your enquiry started.
