Since 2006, if you purchased a residential property in England or Northern Ireland, you would have had to pay stamp duty land tax (SDLT). This has applied to all properties with a purchase price over the £125,000 minimum threshold.
However, this is now set to change. In the latest Budget, the Chancellor announced that the minimum threshold would double to £250,000; this would apply for all deals completed on or after the 23rd of September 2022.
First-time buyers would also benefit from the latest Budget. Suppose neither purchaser has owned a property in the past. In this instance, the minimum SDLT threshold will now be £425,000, an increase from the previous £300,000 threshold. If the property’s value exceeds £625,000 (previously £500,000), this first-time buyer threshold will no longer apply.
Aside from removing the lowest rate, there were no other changes to SDLT rates. This means that tax is due at the following rates:
| Property Value | Only Home | Second Home or Corporate Buyer | Non-Resident Buyer |
|---|---|---|---|
| Entry Threshold – £925,000 | 5% | 8% | 10% |
| £925,000 – £1,500,000 | 10% | 13% | 15% |
| £1,500,000 + | 12% | 15% | 17% |
Scotland and Wales have different thresholds and rates, so if you plan to buy a property in these countries, you will need to pay their appropriate land taxes.