Stamp Duty changes benefit our buyers

Purchasing a home is a long-term investment and since the recent changes to the Stamp Duty Land Tax, our buyers have seen savings of over £7,100, proving it’s a good time to buy.

So, what is Stamp Duty Land Tax and how does it work?

Stamp Duty Land Tax (SDLT) is the charge on the purchase of a property which the buyer is liable to pay, administered by HM Revenue and Customs.

This is charged on a ‘slice’ basis, meaning each payment for each property can be different, and is dependent on the overall property price. This works similarly to income tax.

The most recent change was in October 2022, when the Chancellor introduced the SDLT reduction and increased the threshold for those buying a residential property. We saw the threshold double from £125,000 to £250,000, meaning those who are now purchasing a property up the price of £250,000 will pay no SDLT at all.

What does this mean for you?

This is a great time for our first-time buyers to join the property ladder, as a First-Time Buyers’ Relief (FTBR) applies. FTBR means that anyone who is a first-time buyer will pay no STDL on a property up to £425,000, and only pay SDLT thereafter on properties from £425,001 to £625,000. Previously the 0% threshold was only up to £300,000, giving our first-time buyers more relief on the cost of their new home.

For our buyers who are purchasing their next home, downsizing or buyers alike, they will still benefit from the increased threshold. The current rates apply, as per the table below:

Our buyers purchasing an additional property (such as a second home or a buy-to-let property) will incur an additional 3% charge on top of the regular SDLT rate, called Higher Rate on Additional Dwellings (HRAD). This cost will include the mil-rate band, which is charged at 3% for the purchase of additional dwellings.

With that in mind, buyers could save up to £7,199 on a property at Brook View in Wincham, which is a huge sum of money that can be spent on furnishing your new home!

For more information on SDLT or the SDLT of a specific property, email sales@russellhomes.co.uk

_{Please note, rates and thresholds will be returning to their previous rates for all buyers on April 1st 2025.}

^{All figures are taken from the HMRC, Stamp Duty Land Tax: Current situation and developments since 2020, 18th March 2024.}