When buying a residential property in England or Northern Ireland you must pay stamp duty land tax (SDLT) if the purchase price exceeds a minimum threshold set at £125,000 since 2006.
In September’s mini-Budget the then Chancellor announced that the entry threshold for SDLT payable on residential properties would double to £250,000 for deals completed on or after 23 September 2022. This higher threshold will apply until April 2025.
Where all the purchasers of the property have never owned a property they can take advantage of a first-time buyer minimum SDLT threshold of £425,000, increased from £300,000. If the property costs more than £625,000 (previously £500,000) the first-time buyer threshold does not apply.
The rates of SDLT were not changed in the Budget other than removing the lowest rate. The tax is due at the following rates:
From 2024 the living wage age threshold of 23 will be reduced to 21 meaning that there will be only one adult rate.
