Date updated: Tuesday 5th November 2024
On Wednesday October 30, Chancellor of the Exchequer, Rachel Reeves, delivered the first budget of the new Labour Government.
In it, were significant changes to stamp duty land tax (SDLT), although non-resident rates are unchanged.
Stone King Partner, Philip Askew, unpacks the key changes below.
- For residential property sales which complete, or are substantially performed, on or after 31 October 2024, unless pursuant to contracts exchanged before 31 October 2024, the Government has increased the residential “higher rates” by 2%. This means that the residential “higher rates” are 5% higher than the residential “standard rates”.
- The increased rates for “non-resident transactions” have not increased.
- The “super rate” of SDLT has also been increased by 2%, subject to transitional rules. This means that non-resident companies (or UK companies controlled by non-residents) acquiring dwellings worth more than £500,000 for owner-occupation rather than a relievable activity (for example, letting) must pay SDLT at a flat rate of 19%, unless contracts were exchanged before 31 October 2024.
- No changes were made to the non-residential or mixed rates.
- The temporary residential rates of SDLT, introduced in 2022, will end as planned on 31 March 2025. For transactions which complete, or which are substantially performed, on or after 1 April 2025, SDLT thresholds will return to £125,000 (£300,000 for first time buyers where the purchase price is below £500,000).
If you have any questions on any of the above, please contact Philip Askew.