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:
| Property value | Only home | Second home or corporate buyer |
| Entry threshold – £925,000 | 5% | 8% |
| £925,000 – £1,500,000 | 10% | 13% |
| £1,500,000 + | 12% | 15% |
Non-resident buyers have an additional 2% surcharge applied to the figures above.
When buying in Scotland or Wales you will pay the appropriate land taxes for those countries which have different rates and thresholds.
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If you are planning to enter into a property transaction, we can help you determine which SDLT rate will apply.