Autumn Budget 2024: Changes to Stamp Duty
21st November 2024
Corporate Commercial Solicitor Kyle Smith recently wrote an article showing the key points of the October budget. As a follow up, Property Solicitor Ben James now looks at Stamp Duty Land Tax in further detail.
After the much-anticipated recent Labour budget, increases in stamp duty land tax (SDLT) for non-primary residences were announced. The higher rate for additional properties was raised from 3% to 5% with effect from 31st October 2024 (although most contracts exchanged in advance should not be affected by the increase). The government hopes that the move will help free up housing stock for first-time buyers and movers without an additional property.
The single rate of SDLT payable by companies purchasing dwellings over £500,000 was also increased, from 15% to 17% (again, from 31st October 2024).
From 1st April 2025, there will be further changes coming into effect in terms of changes to the Stamp Duty Bands (thresholds) :
- The nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
- The nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000.
These measures are likely to affect those looking to invest in rental properties. This is further to the reforms set out in the recent Renters’ Rights Bill, with the abolition of “no fault” evictions and limits on rent increases amongst the proposed reforms.
Capital Gains Tax
Despite much speculation around capital gains tax (CGT), rates for residential property remain unchanged. Adding further to the tax burden was perhaps considered a step too far for the sector if coupled with the SDLT increases discussed above.
Our experienced Residential Conveyancing team are here to help.