Understanding the Latest Changes to SDLT
Stamp Duty Land Tax (SDLT) is a tax on property or land purchased over a certain price in England and Northen Ireland.
Currently the thresholds up to 31st March 2025 are:
- £250,000 for residential properties
- £425,000 for first-time buyers buying a residential property worth £625,000 or less
- £150,000 for non-residential land and properties
These thresholds are then taxed at different rates depending on the value of the property/land regardless of the purpose of the purchase. Since the Autumn budget the government have reduced the thresholds for SDLT and have split the lower threshold into 2 which would come into action after 1st April 2025.
Please note that individuals who are buying property for investment purposes will be taxed at the same rate as limited companies.
Rates for the period up to 31st March 2025:
| Threshold | Limited Companies | Individuals |
| Up to £250,00 | 3% | 0 |
| £250,001 to £925,000 | 8% | 5% |
| £925,001 to £1.5 million | 13% | 10% |
| Above 1.5 million at 17% | 15% | 12% |
As of 31st October 2024, the government have changed the higher rates on additional dwellings from 3% to 5%:
| Threshold | Limited Companies | Individuals |
| Up to £250,00 | 5% | 0 |
| £250,001 to £925,000 | 10% | 5% |
| £925,001 to £1.5 million | 15% | 10% |
| Above 1.5 million at 17% | 17% | 12% |
The updated thresholds starting from 1st April 2025 are:
- £125,000 for residential properties
- £300,000 for first-time buyers buying a residential property worth £500,000 or less
- £150,000 for non-residential land and properties
The rates applied to the updated thresholds for 1st April 2025 onwards are:
| Threshold | Limited Companies | Individuals |
| Up to £125,000 | 5% | 0% |
| £125,000 to £250,000 | 7% | 2% |
| £250,001 to £925,000 | 10% | 5% |
| £925,001 to £1.5 million | 15% | 10% |
| Above 1.5 million at 17% | 17% | 12% |
Non-UK residents purchasing additional property, are subject to higher rates of SDLT for additional dwellings, and as of 31st October 24 this rate has increased by 2% resulting in an increased rate from 3% – 5%.
Here at PJCO we have a specialist property department, and if you need assistance starting your BTL journey, please feel free to book a free discovery call using the link below!
Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants.
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