2024 Stamp Duty Shake-Up: Key Changes Every Property Buyer Should Know

The updates made to Stamp Duty Land Tax (SDLT) in the Autumn Budget will affect property buyers and investors across the UK. If you are buying your first home, growing a rental portfolio, or purchasing more property, knowing how these changes are important. Here is a simple overview of the key SDLT updates and what they could mean for you.

Key Updates to SDLT in 2024

1. Higher Rates for Additional Properties

For individuals buying an additional residential property, the SDLT rate will increase from 3% to 5% for transactions completed on or after 31 October 2024. This applies to both individuals purchasing secondary properties and companies buying residential property that is not eligible for the single rate.

2. Corporate Single Rate Increase

Companies purchasing residential properties over ￡500,000 with no intent for certain commercial uses will see the single SDLT rate jump from 15% to 17%.

3. Transitional Rules for Contracts

If contracts are exchanged before 31 October 2024 but complete afterwards, transitional rules may apply, potentially impacting the final SDLT rate.

These changes will help the government address the huge funding gap and achieve its aim of raising ￡40 billion in tax revenue. They will also help promote the purchase of family homes.

Conclusion

The 2024 changes to Stamp Duty Land Tax (SDLT) will affect property purchases in the UK. These changes include new costs for overseas buyers and adjustments for domestic buyers. If you are an investor, it is important to understand the new rates. This knowledge can help you make better buying decisions and avoid unexpected tax costs.

For more expert insights, visit UK Property Accountants or read our article on the key updates of SDLT changes.

?