From the 1st of April, home buyers across England and Northern Ireland will face higher stamp duty payments as two key tax thresholds are adjusted. The temporary thresholds introduced in the September 2022 mini-Budget have come to an end, resulting in changes that may affect your property-buying plans.
Currently, buyers pay no Stamp Duty Land Tax (SDLT) on properties costing under £250,000. However, starting from April, this threshold reverts to its previous level of £125,000. For first-time buyers, the tax-free allowance drops from £425,000 to £300,000.
Here’s a simple breakdown of how stamp duty rates are changing:
Rates Until 31 March:
- £0 to £250,000 (£425,000 for first-time buyers): 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Over £1.5 million: 12%
Rates From 1 April:
- £0 to £125,000 (£300,000 for first-time buyers): 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Over £1.5 million: 12%
Additionally, if you’re buying a second property or investment home worth £40,000 or more, you’ll pay an extra 5% on top of these rates for purchases up to £125,000, with higher increments for pricier properties. Companies purchasing residential properties above £500,000 face a flat SDLT rate of 17%.
The government’s revenue from SDLT reached £11.6 billion in the 2023-24 financial year, a decrease from the previous year’s £15.4 billion, with residential property accounting for £8.6 billion.
It’s crucial to factor these changes into your financial plans if you’re considering buying soon. Be sure to consult your conveyancer or mortgage advisor for personalised advice.
Stay informed, plan carefully, and make your move with confidence!
Adam Charlton is the Managing Director of Homes Partnership, a property professional with over 18 years of local market experience in Crawley and West Sussex. Qualifications: MNAEA, MARLA, DipSP and certDEA. Adam joined Homes Partnership in 2007 and became Managing Director in 2015. He leads valuations, sales strategy, and the wider team, with a particular focus on probate sales, modern method auctions, and the local landlord community.
