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 valueOnly homeSecond home or corporate buyer
Entry threshold – £925,0005%8%
£925,000 – £1,500,00010%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.

If you are planning to enter into a property transaction we can help you determine which SDLT rate will apply.