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The Chancellor of the Exchequer announced in her Budget on 30th October 2024 that the additional 3% stamp duty that was payable on purchases of buy to let and additional properties (and any purchases by companies of residential properties worth under £500,000) would be increased to 5% with effect from 31st October 2024.
In addition, the increased stamp duty rate payable by companies on purchases of residential properties worth over £500,000 also increased to 17% from 15% with effect from 31st October 2024.
These increases do not apply to any transactions where contracts were exchanged on or before 30th October 2024 provided that the parties to the contract do not change or the terms of the contract do not substantially change between exchange and completion.
In addition to the above, the temporary changes to the lower stamp duty threshold and first time buyer threshold was not extended which means that the stamp duty payable will increase on 1st April 2025.
Please see below a summary of the stamp duty thresholds on each portion of the purchase price:-
| Portion of Purchase Price | First Time Buyer Rates | Normal Rates | Additional Rates | |||
| Up to 31.03.2025 | From 01.04.2025 | Up to 31.03.2025 | From 01.04.2025 | Up to 31.03.2025 | From 01.04.2025 | |
| Up to £125,000 | 0% | 0% | 0% | 0% | 5% | 5% |
| £125,001 – £250,000 | 0% | 0% | 0% | 2% | 5% | 7% |
| £250,001 – £300,000 | 0% | 0% | 5% | 5% | 10% | 10% |
| £300,000 – £425,000 | 0% | 5% | 5% | 5% | 10% | 10% |
| £425,001 – £925,000 | 5% | 5% | 5% | 5% | 10% | 10% |
| £925,001 – £1,500,000 | 10% | 10% | 10% | 10% | 15% | 15% |
| £1,500,000 +
|
12% | 12% | 12% | 12% | 17% | 17% |
*non-UK resident surcharge – you will also be liable to pay an additional 2% on any of the rates above if you have been outside the UK for at least 6 months in the 12 months prior to completion of the purchase.
*corporate bodies buying residential property are charged 17% on residential properties costing more than £500,000 (increased from 15% in the recent budget).
