Increase in Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is a tax due if you buy a property or land over a certain price. The amount of stamp duty you owe depends on the cost of the property, whether it will be used for residential purposes, and whether you own any other property.

Under the current rules in England & Northern Ireland, stamp duty is payable if your property is your only residence and is of a value over £250,000. In September 2022, the government temporarily increased the nil rate of stamp duty, the amount before you have to start paying stamp duty on a purchase, for homebuyers, raising the nil rate for first-time buyers from £300,000 to £425,000, and for those buying an additional home from £125,000 to £250,000

The Chancellor’s decision to remove the temporary increase to the nil rate for stamp duty next April will obviously have an impact with a rush to complete purchases before the changes are implemented.

The Chancellor confirmed that stamp duty on the purchase of second homes, buy to let residential properties and companies purchasing property in England & Northern Ireland will rise from 3% to 5% with immediate effect.

The Stamp Duty rise will hit Landlords and could affect their decision to purchase further property and as a consequence could see an increase in rents for tenants.

This change marks a significant shift in the landscape for property transactions.

If you have any questions relating to the conveyancing process please contact Lorraine, Caroline, John or David now on freephone number 0800 083 0815 or email: lorraine.webb@clough-willis.co.uk, caroline.rimmer@clough-willis.co.uk, john.parker@clough-willis.co.uk, darren.rich@clough-willis.co.uk