Further Stamp Duty Land Tax (SDLT) changes, announced in the Autumn budget, come into play on 1 April 2025. The key changes are:
1. The Nil rate band threshold will lower from £250,000 to £125,000, meaning anyone purchasing or buying a share in a residential property for over £250,000 will pay an additional £2,500 in Stamp Duty.
2. The price brackets for first time buyers’ relief form SDLT will reduce, so only claims for properties bought for up to £500,000 (reduced from £625,000) can be made, and the 5% rate will apply from £300,000 up to £500,000. At present, the 0% rate applies up to £425,000 and only the value above £425,000 is charged at 5%.
The SDLT higher rate (applicable to the purchase of second homes) and the rate for certain purchases by corporate bodies has already increased, but those increases will not apply where contracts were exchanged before or on 30 October 2024.
By Priscilla Macleod, Associate; Private Client Property
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