Rates of Stamp Duty Land tax (SDLT) for second homeowners and company purchasers of residential property both increase by 2% as proposed in the Autumn Budget 2024. SDLT thresholds also revert back to their September 2022 levels. There were some obscure changes to Stamp Duty too.
The Chancellor, Rachel Reeves, announced the following measures:
Stamp Duty Land Tax (SDLT)
Additional rates for residential property
For transactions with an effective date on or after 31 October 2024.
- There will be an increase in higher rates payable by purchasers of additional dwellings and companies from 3% to 5% above the standard residential rates.
- An increase to the single rate of SDLT payable by companies and non-natural persons acquiring dwellings for more than £500,000, from 15% to 17%.
Main thresholds for residential property
From 1 April 2025
- As previously announced there is a rollback to the previous rates as of 22 September 2022.
- A 2% rate of SDLT will apply to residential property with a value of £125,000-£250,000.
- The 5% rate will continue to apply to residential property valued at £250,001-£925,000.
SDLT relief: First-Time Buyers (FTB)
From 1 April 2025
- As previously announced there is a rollback to the previous rates as of 22 September 2022.
- The threshold for FTB relief reduces: FTBs receive a 5% discount on the purchase of a home costing £250,000 - £425,000 from 1 April 2025 (it was £250,000 - £625,000).
SDLT Residential Leases
From 1 April 2025
- As previously announced there is a rollback to the previous rates as of 22 September 2022.
- The threshold at which SDLT is charged reduces to £125.000 from £250,000.
Stamp Duty
From Royal Assent to Finance Bill 2024-25
- There will be an exemption from Stamp Duty and Stamp Duty Reserve Tax (SDRT) for Private Intermittent Securities and Capital Exchange System (PISCES) transactions.
Alcohol Duty Stamps scheme
This scheme for stamping larger retail bottles of high-strength alcohol, typically spirits, is discontinued from 1 May 2025.
Useful guides on this topic
Autumn Budget 2024: At a glance
Our At a glance view to the Autumn Budget 2024
Our Autumn Budget 2024: Live Speech highlights
Our live feed summary of the highlights of the Chancellor's Autumn Budget speech.
