Stamp Duty Land Tax, or SDLT, is a tax that you pay if you purchase a property or land worth over a certain amount in England and Wales. This includes a freehold property, a new or existing leasehold property, property bought through a shared ownership scheme or a share in a house. The amount varies depending on the cost of the property, whether you own other property and whether the property is for residential purposes. In recent months there have been some changes to stamp duty with more changes due in the next few months.
Recent Changes
At the end of October 2024, the amount of additional stamp duty payable by landlords, second homeowners and companies rose from 3% to 5%. For firms buying property worth over £500,000, the single rate of stamp duty rose from 15% to 17%. If you are uncertain about how this affects you, or any other financial matter, it may be worth consulting with an accountant. To find one in your area, use a relevant internet search term such as accountants Bristol and you should get results like https://www.chippendaleandclark.
Changes in Stamp Duty Thresholds
In 2022 Liz Truss’ mini budget changed the thresholds for stamp duty. She doubled the threshold that you start paying stamp duty from £125,000 to £250,000, with the amount paid by first-time buyers changing from £300,000 to £450,000. However, in March 2025, these thresholds are expected to revert to their previous levels. The amount payable will be:
Up to £125,000 – 0 . Above £125,000 and up to £250,000 – 2% . Above £250,000 and up to £925,000 – 5% . Above £925,000 and up to £1.5 million – 10% . Above £1.5 million – 12%
What About Scotland and Wales?
Stamp duty is applicable only to property-buying in England and Northern Ireland. Scotland and Wales have their own property tax systems with different thresholds and percentages for payment. In Scotland, this tax is called the Land and Buildings Transaction Tax, or LBTT. In Wales, property buyers pay a Land Transaction Tax, also known as LTT.
