Additional dwellings
With effect from 31 October 2024, the Stamp Duty Land Tax (SDLT) surcharge for additional dwellings in England and Northern Ireland will increase by two percentage points from 3% to 5%.
This measure will affect landlords and individuals looking to purchase a second property such as a holiday home, as well as property developers, and is intended to have the impact of making more properties available for purchase by first time buyers and those moving house.
It is not yet clear whether Wales and Scotland will follow suit, although the additional rates in those devolved nations are already up at 4% and 6% respectively.
Corporate purchases
A further measure announced will impact any corporate bodies looking to purchase a residential property with a cost in excess of £500,000. The flat rate of SDLT on such purchases will increase from 15% to 17%, again taking effect from 31 October 2024, although exemptions will still apply, such as for companies operating a rental business, or property developers.
SDLT thresholds
The nil-rate threshold of SDLT had temporarily increased to £250,000 but, as previously announced, will reduce back down to £125,000 from 1 April 2025.
The nil-rate threshold of SDLT for first time buyers had also temporarily increased to £425,000 but this will revert back to £300,000 from 1 April 2025. No SDLT relief is currently available for first time buyers in respect of the purchase of properties with a value in excess of £625,000 and this threshold will reduce to £500,000 from April 2025.
What’s next?
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