Recent Changes to Stamp Duty Land Tax (SDLT)
31 Oct 2024
In the recent budget announcement significant changes have been made to Stamp Duty Land Tax (SDLT) for purchases of additional residential property.
What is SDLT
SDLT is designed to generate revenue while discouraging speculative buying. The structure of SDLT operates on a tiered system where different rates apply depending on the purchase price of a property. Over the years, SDLT rates have been adjusted to reflect economic conditions, housing demand, and government policy objectives.
Key Changes in the Budget
In the latest budget, on 30th October 2024, the premium on standard SDLT rates for purchases of additional residential property was increased from 3% to 5%.
Revised Rates
The new rates are as follows:
| Property or lease premium or transfer value |
SDLT rate |
| Up to £250,000 |
5% |
| The next £675,000 (the portion from £250,001 to £925,000) |
10% |
| The next £575,000 (the portion from £925,001 to £1.5 million) |
15% |
| The remaining amount (the portion above £1.5 million) |
17% |
This will mean for the purchase of a second home at the value of £300,000 you will pay SDLT of £17,500 (5% of £250,000 + 10% of £50,000).
If you would like further information or advice please contact Anthony, Karen, Michelle or Jodie on 01752 668246 or send an email by clicking here.
