Autumn 2024 Budget Changes to Stamp Duty Land Tax

News  |   10 January 2025

The recent changes to Stamp Duty Land Tax (SDLT) in England and Wales impact both the rates and thresholds, and are arriving in two stages, one of which was implemented late last year, and the other will come into effect in April 2025. Below is a summary of the key changes and their implementation dates:

Increased Rates for Additional Properties and Corporate Purchases (Effective 31 October 2024)

  • Additional Residential Properties: The SDLT surcharge for individuals buying additional residential properties, such as second homes or buy-to-let investments, has risen from 3% to 5% above the standard residential rates.
  • Corporate and Non-Natural Persons: For companies and other non-natural persons purchasing residential properties valued over £500,000, the SDLT rate has increased from 15% to 17%.

Reversion of SDLT Thresholds (Effective 1 April 2025)

  • Standard Residential Properties: The nil-rate threshold will revert from £250,000 to £125,000, meaning from 1 April 2025, the 0% SDLT rate will only apply to properties up to £125,000, with properties between £125,000 and £250,000 being charged at 2%.
  • First-Time Buyers: The relief threshold for first-time buyers will decrease from £425,000 to £300,000. Additionally, the maximum property value eligible for first-time buyer relief will be reduced from £625,000 to £500,000.

These changes are likely to have significant implications for a large number of transactions, and will affect both Freehold and Leasehold properties. As the 1 April 2025 deadline approaches, there will likely be an increase in demand to complete transactions in order to minimise SDLT liability, which may result in delays to transactions in late March due to a surge in demand.

For further information and to get in touch with our Residential Real Estate team, please call us on 020 8290 0440.

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