Stamp Duty Land Tax (SDLT) – it’s more than just the Higher Rates for Additional Properties you may need to plan for…
Posted on 6th November 2024 at 14:09
When buying a residential property that isn’t your main residence, either personally or through a company, you will be liable to an additional surcharge of SDLT known as the Higher Rate for Additional Properties (HRAD).
It was announced in the Autumn Statement that the HRAD would be increasing from 3% to 5% which was effective from 31st October 2024.
It is worth remembering that this is an additional rate over and above the standard SDLT rates. Taking into account these changes, the current rates are:
But what wasn’t mentioned in the Autumn Statement?
The current thresholds were only temporary up to 31st March 2025 – so these will be changing and you’ve guessed it…reducing.
The thresholds and rates from 1st April 2025 will become:
These changes therefore effect investors but also people buying / replacing their own home.
With these changes someone buying a home for themselves will pay an additional £2,500 in SDLT whilst an investor will be pay an additional £8,750 on properties of £250,000 and over.
That’s not all…if you are a first time buyer you’ll be hit as well!
The values on which you get a discount on SDLT as a first time buyer are reducing also from 1st April 2025. These changes are detailed below:
In practice, this means that a first time buyer buying a property with a value of £425,000 from April 2025 onwards will now be paying £6,250 more in SDLT.
So if you are buying your own home you are going to need to budget for these additional taxes at the point of purchase. For investors, making sure your numbers stack will become as important as ever. In our opinion property remains a great long term investment but being on top of your figures to make sure your deals stack really needs to be at the forefront.
If you need help reviewing these new updates to Stamp Duty Land Tax, get in contact with us below today!
📞 01249 816 810
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