How Will Stamp Duty Land Tax Affect Landlords

In the Autumn Budget, Rachel Reeves announced changes to the Stamp Duty Land Tax (SDLT) thresholds, which come into effect from the 1^st April 2025. These changes, combined with the new SDLT rate for property investors and limited companies, can have a significant impact on property investors during one of the busiest periods for the market.

The first major change is the change to the SDLT thresholds themselves, which has split the first bracket for properties worth up to £250,000 into two new brackets. This means that for a property investor closing on a second property worth £250,000 in March, you would only need to pay the SDLT rate of 5% resulting in a charge of £12,500. However, if you close on the same property in April, you would also be subject to the new increase of 2%, resulting in a 7% rate for properties between £125,001 and £250,000, resulting in an SDLT charge of £15,000.

This £2,500 difference means that there is a significant benefit to pushing for early completion, as properties closed before April will not be subject to the new SDLT thresholds.

If you are unsure of how these changes to SDLT will impact your investments, please get in touch with our BTL team at PJCO –
https://acuityclientscheduling-pjco.as.me/DiscoveryCall

Up to 31^st March 2025:

Property Value	SDLT rate	Property investor additional rate (for multiple properties)
Up to £250,000	0%	5%
From £250,001 – £925,000	5%	10%
From £925,001 – £1.5m	10%	15%
From £1.5m onwards	12%	17%

From 1^st April 2025:

Property Value	SDLT rate	Property investor additional rate (for multiple properties)
Up to £125,000	0%	5%
From £125,001 – £250,000	2%	7%
From £250,001 – £925,000	5%	10%
From £925,001 – £1.5m	10%	15%
From £1.5m onwards	12%	17%

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