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Frances Aitchison-Boundy, of Ringrose Law, talks about understanding the impact of the recent budget on stamp duty




Understanding the Impact of the Recent Budget on Stamp Duty and How Ringrose Law Can Help You Navigate Home Buying

In the Autumn Budget of October 2024, Chancellor Rachel Reeves announced significant changes to Stamp Duty Land Tax (SDLT) that impact homebuyers and property investors.

These changes are designed to make homeownership more accessible for first-time buyers and to address housing market dynamics.

Frances Aitchison-Boundy, of Ringrose Law.
Frances Aitchison-Boundy, of Ringrose Law.

Key Changes to Stamp Duty:

Increase in Surcharge for Additional Properties:

Effective from October 31, 2024, the surcharge on additional property purchases, such as buy-to-let investments and second homes, increased from 3% to 5% for additional properties up to £250,000, from 8% to 10% for additional properties above £250,001 to £925,000, from 13% to 15% for additional properties above £925,001 to £1.5 million and from 15% to 17% on additional properties above £1.5millionThis change aims to reduce demand for second homes and make properties more accessible to first-time buyers and home movers.

Reduction in First-Time Buyer Relief:

Starting April 1, 2025, the nil-rate threshold for first-time buyers will decrease from £425,000 to £300,000. Additionally, the maximum property value eligible for first-time buyer relief will drop from £625,000 to £500,000. This adjustment means that first-time buyers purchasing properties above the new threshold of £500,000 will pay the Standard Rate for Main Residences.

The rates will change as follows: 0% on properties up to £300,000. 5% on properties above £300,001 to £500,000.

Reversion of Standard SDLT Threshold:

The temporary increase in the standard SDLT threshold to £250,000 will end on April 1, 2025, reverting to the previous threshold of £125,000. This change will result in a stamp duty liability of 2% for homebuyers purchasing properties above £125,000 and up to £250,000

Implications for Homebuyers:

First-Time Buyers: Those planning to purchase properties should consider completing transactions before April 1, 2025, to benefit from the current higher nil-rate threshold.

Investors and Second-Home Buyers: The increased surcharge makes additional property purchases more expensive, potentially affecting investment decisions.

All Homebuyers: With the standard SDLT threshold reverting to £125,000, buyers of properties above this value will face increased stamp duty costs from April 2025.

How Ringrose Law Can Assist You:

Navigating these changes can be complex, but our experienced conveyancing team at Ringrose Law is here to help. We can offer expert advice, many years of experience and a personalised service.

If you're considering buying a property or need advice on how these stamp duty changes impact you, contact our conveyancing team at Ringrose Law. We're committed to guiding you through every step of your property transaction. Contact Frances from our Conveyancing team at our Newark office on 01636 594460 or visit us on Castlegate.




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