Since 2006, if you were to buy a residential property in England or Northern Ireland, you have had to pay a stamp duty land tax (SDLT) on homes with a purchase price above the minimum threshold of £125,000.
However, in the most recent September mini-budget, the Chancellor announced that the entry threshold for stamp duty land tax (SDLT) would double to £250,000 for deals completed on or after the 23rd of September 2022. This higher threshold will remain in place until April 2025.
The mini-budget also benefits first-time buyers as their minimum SDLT threshold of £300,000 will be increased to £425,000. Previously, the first-time buyer threshold would be capped at £500,000, but this has risen too to £625,000.
Other than removing the lowest rate, the rates of SDLT have not been changed, meaning that tax is due at the following:
| Property Buyer | Only Home | Second Home Or Corporate Buyer |
|---|---|---|
| Entry Threshold – £925,000 | 5% | 8% |
| £925,000 – £1,500,000 | 10% | 13% |
| £1,500,000 + | 12% | 15% |
Non-resident buyers have an additional 2% surcharge applied to the figures above. Those purchasing a property in Scotland or Wales will also have different rates and thresholds based on the appropriate land taxes for the country.
If you are planning to enter into a property transaction, we can help you determine which SDLT rate will apply, so please do not hesitate to contact us for advice.