What the SDLT Changes Announced in the Budget Mean for You

The recent budget announcement by the Labour government on October 30, 2024, brought significant changes to Stamp Duty Land Tax (SDLT) thresholds and rates. If you’re in the market for a property, these changes could have a notable financial impact, particularly if you’re an investor or purchasing a second home.

For instance, purchasing a property valued at £500,000 will now cost you an additional £10,000 in SDLT, with this figure rising to £12,500 if you complete after April 2025. Let’s explore how these changes unfold and what they mean for you.

The Changes in SDLT Explained

The adjustments to SDLT were implemented immediately after the budget announcement, leaving buyers little time to plan. As detailed in our earlier blog on SDLT thresholds and rates (please see blog for more information), these changes introduce stepped increases based on the timing of your property transaction.

For investors buying residential properties to let, the timing of your purchase plays a critical role in determining the SDLT you pay. Here are a few scenarios to illustrate the impact:

Example: 
Property purchase date – 30/10/2024 
Property price – £500,000 
SDLT – £27,500

Property purchase date – 01/11/2024 
Property price – £500,000 
SDLT – £37,500

Property purchase date – 01/04/2025 
Property price – £500,000 
SDLT – £40,000

From this we can see that your property completing on the 31^{st of} October 2024, cost you an additional £10,000 in SDLT, then if it completed the day before! 
 
Unfortunately, the changes from the budget were implemented instantly which made it more difficult to plan for this change, however further steps can be taken to plan your investments. 

If you have a property in progress now, pushing for it to complete before 31^st March 2025, will save you £2,500 in SDLT. 

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