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Insights // 06 November 2023

How Much Stamp Duty (SDLT) Will I be Required to Pay?

Partner and head of our award-winning Residential Property team, Manisha Bhula, explains how much Stamp Duty you will be required to pay when purchasing a property.

In the autumn statement on 17 November 2022, the Government announced that the Stamp Duty cuts introduced by the previous Government in September will not be permanent.

Chancellor Jeremy Hunt said that he will “sunset the measure” from 31 March 2025, when SDLT rates will return to their previous levels.

As a result of his predecessor Kwasi Kwarteng’s earlier ‘mini budget’, the SDLT nil-rate threshold (at which property buyers in England and Northern Ireland begin to pay SDLT) is currently £250,000. From 31 March 2025 this will return to the previous level of £125,000, in place prior to 23 September 2022.

The nil-rate threshold for first-time buyers (at which first time buyers in England and Northern Ireland begin to pay SDLT), currently £425,000, will return to its previous level of £300,000. As will the maximum purchase price for which First Time Buyers’ Relief can be claimed, reverting to £500,000 from the current level of £625,000.

How Will It Affect You?

It is important to remember that the changes announced in the autumn statement will not take effect until 31 March 2025. The current SDLT rates, as introduced by the previous government, will continue to apply until that time.

A lot can change in two and a half years so do not rule out further changes in the future.

The situation provides a degree of certainty in the medium term and offers good news to anyone considering purchasing a property in the near future, particularly first-time buyers.

If the changes proposed for 2025 do proceed as planned, the market and everyone involved will have plenty of time to prepare, unlike with other measures announced more suddenly in the past two years.

Current Stamp Duty Land Tax (SDLT) Rates

SDLT rates are normally charged on a ‘sliced’ basis, meaning that the rate increases for higher value properties as follows and that multiple rates may be applicable for different proportions of a property’s value.

The SDLT rates and calculations below apply until 30 March 2025.

Property or lease premium or transfer value

SDLT rate

Up to £250,000

Zero

The next £675,000 (the portion from £250,001 to £925,000)

5%

The next £575,000 (the portion from £925,001 to £1.5 million)

10%

The remaining amount (the portion above £1.5 million)

12%

The examples below indicate how much SDLT you will be required to pay, based upon the property's purchase price. 

Property Purchase Price (£)

SDLT charge for standard home mover (£)

SDLT charge for first-time buyer (£)

200,000

0

0

400,000

7,500

0

600,000

17,500

8,750

800,000

27,500

£27,500

1,000,000

£41,250

£41,250

2,000,000

£151,250

£151,250

How We Can Help You

Our Residential Property team at Blandy & Blandy handles property sales and purchases of all sizes and levels of complexity. Our offices are based in Reading, Henley-on-Thames and Wokingham but we can of course also advise you remotely.

Throughout recent years we have continued to invest in our growing team so we are very well placed to be able to provide clients with a highly personal and responsive service as we find ourselves in what could be another challenging period in the housing market.

We are accredited by the Law Society’s Conveyancing Quality Scheme (CQS) and our successful approach has been recognised through several awards and nominations. Our clients also kindly continue to provide excellent feedback, which can also be viewed via our website and through platforms including Google Reviews and Review Solicitors.

For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.

This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.

Manisha Bhula

Manisha Bhula

Partner, Residential Property

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