Stamp Duty Update October 2024
In the Autumn Budget 2024, the Chancellor, Rachel Reeves, announced changes to Stamp Duty Land Tax (SDLT), particularly affecting additional property purchases and company buyers.
Key updates include:
SDLT Rates for Second Homes and Company Purchases:
- Starting 31 October 2024, the SDLT surcharge on additional residential properties and corporate purchases will increase from 3% to 5%.
- Companies and other entities purchasing residential property worth over £500,000 will see an SDLT rate increase from 15% to 17%.
Residential Property SDLT Thresholds:
- Effective 1 April 2025, SDLT thresholds will revert to the rates set on 22 September 2022.
- A 2% SDLT rate will apply to properties valued between £125,000 and £250,000.
- The 5% rate will continue for properties priced from £250,001 to £925,000.
First-Time Buyer Relief:
- As of 1 April 2025, the relief threshold for first-time buyers will reduce, applying a 5% rate on properties costing between £250,000 and £425,000 (down from the previous £250,000 – £625,000 range).
Stamp Duty Exemptions:
- Following the Royal Assent of the Finance Bill 2024-25, Private Intermittent Securities and Capital Exchange System (PISCES) transactions will be exempt from Stamp Duty and Stamp Duty Reserve Tax (SDRT).
Users of the PALI Smart Quote can rest assured whenever there are updates to Stamp Duty, these changes are promptly applied within the Smart Quote software, ensuring that all quotations reflect the most current stamp duty rates accurately—including the recent updates outlined here.
The Smart Quote offers many additional benefits, so if you’d like to arrange a demonstration, please reach out to our team at 0800 023 5030 or email us at sales@paliltd.com.
