What is stamp duty?

Stamp duty, or Stamp Duty Land Tax (SDLT), is a government tax which is paid by the buyer of a property, as a lump sum upon completion. It is paid by buyers who are purchasing a property or land over a certain price bracket.

The amount of SDLT liability depends on several factors, including (but not limited to) whether a buyer is:

• A UK resident
• Purchasing a property as an individual or company
• A first-time buyer
• Replacing a main residence
• Purchasing additional property

Whys is stamp duty changing?

In September 2022, the then Conservative Government announced a temporary change to stamp duty, lowering the upfront costs of moving home. The aim of this was to support the housing market, the jobs and businesses that rely on it, and those who were hoping to get on the housing ladder.

Whilst this measure was initially announced as a permanent change, at the Autumn Statement 2022, the government announced that the increase in the residential nil-rate threshold will end on 31 March 2025.

How is stamp duty Changing?

• 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.

The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 and will return to the previous level of £500,000.