Stamp Duty Land Tax is Rising

What is Stamp Duty Lax Tax?

Stamp Duty Land Tax is paid if you purchase a property or land over a certain price in England & Wales. This can be a freehold or leasehold property or when you purchase a property through a shared ownership scheme.

On 1^st April 2025 the threshold for Stamp Duty Land Tax will change.

The amount of Stamp Duty depends on when the property is bough and how much you are paying for the property. You can use the Government’s Stamp Duty Land Tax Calculator to find out how much you will pay.

Below are the current thresholds up to 31^st March 2025

• £250,000 for residential properties
• £425,000 for first time buyers buying a residential property worth £625,000 or less
• £150,000 for non-residential land and properties

Below are the rates up to 31 March 2025

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%

Example:-

In October 2024 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

• 0% on the first £250,000 = £0
• 5% on the final £45,000 = £2,250
• total SDLT = £2,250

Below are the thresholds from 1^st April 2025

SDLT starts to apply when you buy property that costs:

• £125,000 for residential properties
• £300,000 for first-time buyers buying a residential property worth £500,000 or less
• £150,000 for non-residential land and properties

Below are the rates from 1 April 2025

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%

Example:-

In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:

• 0% on the first £125,000 = £0
• 2% on the second £125,000 = £2,500
• 5% on the final £45,000 = £2,250
• total SDLT = £4,750

When is Stamp Duty Land Tax not paid?

• Inheriting a property – If you are inheriting a property you will not pay SDLT on the property. However, you may have to pay Inheritance Tax.
• Transferring ownership due to divorce – If you are transferring the ownership of a property due to divorce you will not have to pay SDLT. However, if you are doing this but are not married or in a Civil Partnership you may have to pay SDLT.

How can Taylor Bracewell’s Residential Property help?

If you are looking at buying or selling your home, whether you are a first time buyer or are building up your property portfolio, our Residential Property team can help. Give our Doncaster team a call on 01302 341414 or give our Sheffield team a call on 0114 272 1884. Alternatively, you can fill out our online enquiry form.