The Autumn Budget 2024: Key Changes to Stamp Duty Land Tax (SDLT)

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The changes to Stamp Duty Land Tax (“SDLT”) announced in the Autumn Budget of 2024 has had an impact on both individuals and companies purchasing properties from 31 October 2024.

Further changes are also coming into effect from 1 April 2025.  

What are the Key Changes?

  • Increased rates for additional residential purchases: the SDLT rate for individuals purchasing additional properties has risen from 3% to 5% above the standard residential rates. This came into effect on the 31 October 2024. This will impact individual or investors purchasing buy to let properties.
  • Increased rates for company or corporate entity purchase: the SDLT rates for company or other corporate entities (not individuals) purchasing residential properties has increased from 15% to 17% for residential properties over £500,000. This came into effect on the 31 October 2024.
  • Decrease in ‘first-time buyer relief’: the first-time buyer relief will reduce from £425,000.00 to £300,000.00, which comes into effect from 1 April 2025. This will no doubt impact first-time buyers wanting to step onto the property ladder.
  • Decrease in the maximum property value for first-time buyers: the maximum property value that the ‘first-time buyer relief’ can be claimed on, has been reduced from £625,000.00 to £500,000.00.      
  • Change of ‘nil rate band’: the nil rate band has been reduced from £250,000 to £125,000, effective from 1 April 2025. This means that anyone buying a property up to £125,000 can only claim 0% rate and those buying between £125,000 to £250,000 will be liable to 2% rate.

If you are looking to purchase your first property or any additional properties in the UK, there will be critical SDLT considerations to take into account.

Our Residential Property department is available to assist with any questions you may have regarding implications of the SDLT changes as a result of the Autumn Budget. Please do not hesitate to get in touch with us today.  

This publication is for general information only and does not seek to give legal advice or to be an exhaustive statement of the law. Specific advice should always be sought for individual cases.