Stamp duty changes

28th September 2022

As part of the Chancellor’s recent ‘fiscal event’, the Stamp Duty Land Tax (SDLT) rates applied to residential property purchases in England changed with immediate effect on 23 September.

Unlike the SDLT ‘holiday’ introduced by Rishi Sunak as part of his economic package launched in response to Covid-19, this is a permanent change, until the next budget or fiscal event that changes rates again.

The threshold at which SDLT kicks in has been lifted from the previous figure of £125,000 to £250,000, meaning in essence a £2,500 saving for most buyers above this level.

If a buyer successfully claims multiple dwellings relief, the saving will apply to each dwelling and be of even greater benefit.

Separately, the threshold at which first-time buyers – who must intend to use the property as their main residence has been increased from £300,000 to £425,000, and the value of a property on which first-time buyers can claim SDLT relief has increased from £500,000 to £625,000.

The second home surcharge of 3% will still apply, as will the additional levy on non-UK residents and certain types of companies.

The basic rates are set out below. HMRC’s own calculator can be found online here.

Property or lease premium or transfer value SDLT rate
Up to £250,000 Zero
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5m) 10%
The remaining amount (the portion above £1.5 million) 12%