Changes in SDLT further to the Autumn 2024 Budget

News  |   7 November 2024

Written by
James Millican, Trainee Solicitor

Further from the announcement of the 2024 Autumn budget, and in a somewhat surprising move, we have seen no change in the CGT rate for residential property. We have, however, instead seen a steep increase in Stamp Duty rates, with a promise of further increases on the horizon next year.

Stamp Duty rates increased for both individuals and businesses buying a second home/additional properties in England or Northern Ireland. They were three percent higher than standard Stamp Duty rates, however as of last week, Stamp Duty on additional properties will be five percent above standard rates.

Full details in the table below:

Purchase Price Main Residence Rate Second or Additional Property – Previous Rate Second or Additional Property – Rate from 31 October
Up to £250,000 (£425,000 for First Time Buyers) 0% 3% 5%
£250,001 - £925,000 (£625,000 for First Time Buyers) 5% 8% 10%
£250,001 - £925,000 10% 13% 15%
£925,001 - £1,500,000 12% 15% 17%

Furthermore, this is due to change again in April 2025 - although it was not referred to directly in Wednesday's Budget.

These further changes to stamp duty in England and Northern Ireland will take place from 1 April 2025. These changes will impact virtually all businesses that own or purchase residential property and all homeowners, including first-time buyers, home-movers, and second-home buyers, as:

  • The stamp duty threshold will drop from £250,000 to £125,000.
  • First-time buyer stamp duty relief will drop from £425,000 to £300,000.

Full details are provided below:

Purchase Price Main Residence Rate Second or Additional Property
Up to £125,000 (£300,000 for First Time Buyers) 0% 5%
£125,001 - £250,000 (£300,000 for First Time Buyers) 2% 7%
£250,001 - £925,000 5% 10%
£925,001 - £1,500,000 10% 15%
£1,500,001 + 12% 17%

This will cause a significant change in the conveyancing market, directly affecting buyers of additional properties and companies investing in high-value real estate, and we will likely see further changes as these new rates settle in, and in the run up to the 1 April 2025 changes.

For for further information and to speak to a member of our residential real estate team, please get in touch on 020 8290 0440.

Related News & Insights