A number of changes were made to the Stamp Duty Land Tax (SDLT) regime earlier this year and these
remain. Generally, the changes increase the amount that a purchaser can pay for residential property
before they become liable for SDLT.
The residential nil rate tax threshold increased from £125,000 to £250,000.
The nil rate threshold for First Time Buyers’ Relief increased from £300,000 to £425,000 and the
maximum amount that an individual can pay while remaining eligible for First Time Buyers’ Relief
increased to £625,000.
The changes apply to transactions with effective dates on and after 23 September 2022 in England and
Northern Ireland. These changes do not apply to Scotland or Wales which operate their own land
transactions taxes.
There are no changes in relation to purchases of non-residential property.
£
%
£
%
0 – 250,000
0
0 – 150,000
0
250,001 – 925,000
5
150,001 – 250,000
2
925,001 – 1,500,000
10
Over 250,000
5
Over 1,500,000
12
Higher rates may be payable where further residential properties are acquired.
Comment
However, the government has now confirmed that these changes will be a temporary SDLT reduction.
The SDLT cut will remain in place until 31 March 2025 to support the housing market.
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