When buying a property one of the most important things to have in place before you start the process is your budget. Along with all the exciting purchases you will be making following completion you need to ensure that you have funds in place for the legal process itself, which includes the various disbursements we have to pay out on your behalf.
Wollens Paralegal Daisy Otton writes this helpful article outlining the changes to Stamp Duty Land Tax (SDLT).
One of the biggest disbursements you will find yourself having to pay is Stamp Duty Land Tax (SDLT) which is a tax payable to H. M. Revenue & Customs (HMRC) on the completion of a house purchase.
The amount of SDLT which you have to pay depends on a number of factors including:
- When you purchase the property
- How much you pay for the property
- If you are eligible for relief, such as first time buyer’s relief
- If the property will be your main residence, or an additional property.
Until the 31st March 2025 the rates for the purchase of a single property are as follows:
|
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% |
However, there will be significant charges to these SDLT Rates from the 1st April 2025, when the rates will be as follows:
|
Property or lease premium or transfer value |
SDLT rate |
|
Up to £125,000 |
Zero |
|
The next £125,000 (the portion from £125,001 to £250,000) |
2% |
|
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 SDLT payable if you are entitled to First Time Buyer Relief is different to the standard rates but will also change as of the 1st April 2025.
- Up until the 31st March 2025 there is no SDLT payable up to the value of £425.000 and 5% on the portion of the purchase price which falls between £425,001 to £625,000. You are not entitled to relief when the purchase price is £625,000 or over.
- From the 1st April 2025 there will be no SDLT payable up the value of £300,000 but SDLT will be charged at 5% on the portion which falls between £300,001 to £500,000. You will not be entitled to relief when the purchase price is over £500,000.00
Finally, if the Property is an additional Property, you will pay an additional 5% on the rates referred to above.
If you currently have a transaction going through with us which you hope to complete before the changes take place, please ensure we are aware of this at the earliest opportunity. While we will do all that we can to complete the transaction within your preferred timescales, we are unable to guarantee that this will happen. You must ensure that you budget your finances accordingly and be prepared to pay the higher rates.
How we can help
If you would like to discuss any SDLT questions and how the changes from the 1st April 2025 might affect your property purchase, please do not hesitate to get in touch with one of our property lawyers who will be happy to talk this through.
For further information, please contact our Daisy or our conveyancing team. Call us on 01392 539200
Email us : [email protected]
call one of our offices:
South Devon 01803 213251
Exeter 01392 274006
North Devon 01271 342268
You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.
