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Stamp Duty Explained – Autumn Budget 2024
November 8, 2024
Information published was correct at the time of writing
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Stamp duty update – Autumn Budget 2024
In the Autumn budget 2024, the Chancellor – Rachel Reeves, announced some immediate and some future changes to Stamp Duty rates. This guide helps explain these changes and looks at the impact on each type of buyer.
Whether you are a first time buyer, home mover or own multiple properties, details on the bandings of Stamp Duty Land Tax can be complicated and as the cost is significant it is important to fully understand what your bill will look like before you commit to a purchase.
Please note that the below guidance is to be used for illustrative purposes only and you should always obtain independent, expert tax advice from a professional tax adviser.
Stamp duty land tax – standard banding
Stamp Duty Land Tax – SDLT is a property tax applied to property purchases in England and Northern Ireland (Wales and Scotland have different taxes). SDLT is calculated using bands and is based on the part of the property price falling into each band.
In the 2024 Autumn Budget, The Chancellor announced that the current zero rate threshold will be lowered from £250,000 to £125,000, from 1st April 2025.
The standard bands of Stamp Duty are:
| Property Value |
SDLT Rate to 31/03/2025 |
SDLT Rate after 01/04/2025 |
| Up to £125,000 | Zero % | Zero % |
| £125,001 – £250,000 | Zero % | 2% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1.5m | 10% | 10% |
| Above £1.5m | 12% | 12% |
During this article, we will look at examples of the varying SDLT costs for the purchase of a property valued at £600,000.
Example: If you are purchasing your own home, and it is to be the only property that you own once the transaction completes (i.e., you are not keeping an existing property), at £600,000:
| To 31/3/2025 | After 1/4/2025 | ||||
| Stamp Duty Band | Borrowing | SDLT Rate | Cost | SDLT Rate | Cost |
| Up to £125k | £125,000 | 0% | £0 | 0% | £0 |
| £125,001 – £250,000 | £125,000 | 0% | £0 | 2% | £2,500 |
| £250,001 – 925,000 | £350,000 | 5% | £17,500 | 5% | £17,500 |
| £600,000 | £17,500 | £20,000 |
You will currently pay £17,500 in Stamp Duty. This will rise to £20,000 on 1st April 2025
First time buyer relief
There is currently a SDLT relief in place specifically for qualifying First Time Buyers.
The zero rate band has been increased from £125,000 to £425,000 – but only if the total purchase price is under £625,001.
Example: If you are a First Time Buyer purchasing a property for £600,000 before 1st April 2025, the stamp duty payable is £8,750 (half that of a non first time buyer).
| Up to £425,000 | Zero % | £0 |
|
The next £175,000 (the portion from £425,001 to £600,000) |
5% | £8,750 |
IMPORTANT: The zero rate threshold for First Time Buyers will be reduced from £425,000 to £300,000 on 1st April 2025.
Also, from that date the maximum property value for First Time Buyers to access the relief decreases to £500,000.
So, if a first-time buyer is purchasing a £600,000 property after 1st April, they will no longer be eligible for any relief on Stamp Duty and so will pay £20,000 – an additional £11,250.
Second property additional charge
The other scenario where SDLT is calculated differently from the standard scenario is for purchasers who own a second property or more, the nil rate band is reducing back to £125,000, and there is an additional 3-5% charge at each banding when compared to sole property rates. The Zero band threshold is also changing for this group of purchasers in April 2025.
Example: The SDLT rate on a purchase of an additional property at £600,000 is currently £47,500 and this will rise to £50,000 in April 2025.
| To 31/3/2025 | After 1/4/2025 | ||||
| Stamp Duty Band | Borrowing | SDLT Rate | Cost | SDLT Rate | Cost |
| Up to £125,000 | £125,000 | 5% | £6,250 | 5% | £6,250 |
| £125,001 –£250,000 | £125,000 | 5% | £6,250 | 7% | £8,750 |
| £250,001 – 925,000 | £350,000 | 10% | £35,000 | 10% | £35,000 |
| £925,001 – £1.5m | £0 | 15% | £0 | 15% | £0 |
| Above £1.5m | £0 | 17% | £0 | 17% | £0 |
| £600,000 | £47,500 | £50,000 | |||
It is clear from the above that all transactions will incur higher tax costs from April 2025. But First Time Buyers are going to be affected the most. If you are thinking of getting on the property ladder and would like to review your options to start your home ownership journey, we are here to support you with our free, professional and friendly mortgage advice.
Similarly, if you are thinking of moving home or expanding your buy to let portfolio, our advisers can support throughout the process with whole of market, Independent Mortgage Advice.
There is an index below which shows the current and future calculation for different buyer types at different property values. However, this is only to be used as an indicative illustration and does not replace the advice of an expert Tax Adviser.
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INDEX:
A full index of Stamp Duty Rates for different property prices and buyer scenarios I below for reference. However, please note that is for guidance only and should not be used to calculate any real time transaction – always obtain professional tax advice.
| Scenario: MOVING HOME – selling existing property (no 2nd property owned) | |||
| PURCHASE PRICE | SDLT Current | Post 1st APRIL 2025 SDLT | Additional Charge |
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £2,500 | £5,000 | £2,500 |
| £350,000 | £5,000 | £7,500 | £2,500 |
| £400,000 | £7,500 | £10,000 | £2,500 |
| £450,000 | £10,000 | £12,500 | £2,500 |
| £500,000 | £12,500 | £15,000 | £2,500 |
| £550,000 | £15,000 | £17,500 | £2,500 |
| £600,000 | £17,500 | £20,000 | £2,500 |
| £650,000 | £20,000 | £22,500 | £2,500 |
| £700,000 | £22,500 | £25,000 | £2,500 |
| £750,000 | £25,000 | £27,500 | £2,500 |
| £800,000 | £27,500 | £30,000 | £2,500 |
| £850,000 | £30,000 | £32,500 | £2,500 |
| £900,000 | £32,500 | £35,000 | £2,500 |
| £950,000 | £36,250 | £38,750 | £2,500 |
| £1,000,000 | £41,250 | £43,750 | £2,500 |
| £1,100,000 | £51,250 | £53,750 | £2,500 |
| £1,200,000 | £61,250 | £63,750 | £2,500 |
| £1,300,000 | £71,250 | £73,750 | £2,500 |
| £1,400,000 | £81,250 | £83,750 | £2,500 |
| £1,500,000 | £91,250 | £93,750 | £2,500 |
| £1,600,000 | £103,250 | £105,750 | £2,500 |
| Scenario: ALREADY OWNS OR IS PURCHASING AN ADDITIONAL PROPERTY | |||
| PURCHASE PRICE | SDLT Current | Post 1st APRIL 2025 SDLT | Additional Charge |
| £250,000 | £12,500 | £15,000 | £2,500 |
| £300,000 | £17,500 | £20,000 | £2,500 |
| £350,000 | £22,500 | £25,000 | £2,500 |
| £400,000 | £27,500 | £30,000 | £2,500 |
| £450,000 | £32,500 | £35,000 | £2,500 |
| £500,000 | £37,500 | £40,000 | £2,500 |
| £550,000 | £42,500 | £45,000 | £2,500 |
| £600,000 | £47,500 | £50,000 | £2,500 |
| £650,000 | £52,500 | £55,000 | £2,500 |
| £700,000 | £57,700 | £60,000 | £2,300 |
| £750,000 | £62,500 | £65,000 | £2,500 |
| £800,000 | £67,500 | £70,000 | £2,500 |
| £850,000 | £72,500 | £75,000 | £2,500 |
| £900,000 | £77,500 | £80,000 | £2,500 |
| £950,000 | £83,750 | £86,250 | £2,500 |
| £1,000,000 | £91,250 | £93,750 | £2,500 |
| £1,100,000 | £106,250 | £108,750 | £2,500 |
| £1,200,000 | £121,250 | £123,750 | £2,500 |
| £1,300,000 | £136,250 | £138,750 | £2,500 |
| £1,400,000 | £151,250 | £153,750 | £2,500 |
| £1,500,000 | £166,250 | £168,750 | £2,500 |
| £1,600,000 | £183,250 | £185,750 | £2,500 |
|
Scenario: FIRST TIME BUYER |
|||
| PURCHASE PRICE | SDLT Current | Post 1st APRIL 2025 SDLT | Additional Cost |
| £250,000 | £0 | £0 | |
| £300,000 | £0 | £0 | |
| £350,000 | £0 | £2,500 | £2,500 |
| £400,000 | £0 | £5,000 | £5,000 |
| £450,000 | £1,250 | £7,500 | £6,250 |
| £500,000 | £3,750 | £10,000 | £6,250 |
| £550,000 | £6,250 | £17,500 | £11,250 |
| £600,000 | £8,750 | £20,000 | £11,250 |
| £650,000 | £20,000 | £22,500 | £2,500 |
| £700,000 | £22,500 | £25,000 | £2,500 |
| £750,000 | £25,000 | £27,500 | £2,500 |
| £800,000 | £27,500 | £30,000 | £2,500 |
| £850,000 | £30,000 | £32,500 | £2,500 |
| £900,000 | £32,500 | £35,000 | £2,500 |
| £950,000 | £36,250 | £38,750 | £2,500 |
| £1,000,000 | £41,250 | £43,750 | £2,500 |
| £1,100,000 | £51,250 | £53,750 | £2,500 |
| £1,200,000 | £61,250 | £63,750 | £2,500 |
| £1,300,000 | £71,250 | £73,750 | £2,500 |
| £1,400,000 | £81,250 | £83,750 | £2,500 |
| £1,500,000 | £91,250 | £93,750 | £2,500 |
| £1,600,000 | £103,250 | £105,750 | £2,500 |
| SDLT CHANGES | Current | From April 2025 | |
| FTB Allowance | £425,000 | £300,000 | |
| FTB Max Purchase Threshold | £625,000 | £500,000 | |
| Nil Rate Band | £250,000 | £125,000 | |
| NOTES: | |||
| Additional property SDLT increase taking place with immediate effect | |||
