Navigating the SDLT Changes: Key Considerations for Conveyancers

With the upcoming changes to Stamp Duty Land Tax (SDLT) drawing closer, conveyancers are once again preparing for a flurry of activity as buyers rush to complete transactions before the new rules take effect. While the full impact remains to be seen, one thing is clear: managing client expectations and ensuring smooth transactions will be crucial.?

SDLT Rates: What’s changing??

From 1st April 2025, temporary SDLT reductions introduced in 2022 will come to an end.?

Current SDLT Rates (Until 31 March 2025):?

Home Movers:?

• 0% paid on properties up to ￡250,000?

• 5% paid on the property value between?￡250,001 and ￡925,000?

• 10% paid on the property value between ￡925,001 and ￡1.5million?

• 12% paid on the property value above ￡1.5million?

First-Time Buyers:?

• 0% on properties up to ￡425,000?

• 5% paid on the property value between ￡425,001 and ￡625,000?

• If the property value is above ￡625,000, first time buyers must pay stamp duty at the regular rates outlined above.?

New SDLT Rates (From 1 April 2025):?

Home Movers:?

• 0% paid on the property value up to ￡125,000 ?

• 2% paid on the property value between ￡125,001 and 250,000 ?

• 5% paid on the property value between ￡250,001 and ￡925,000 ?

• 10% paid on the property value between ￡925,001 and ￡1.5 million ?

• 12% paid on the property value over ￡1.5 million?

First-Time Buyers:?

• 0% paid on the property value up to ￡300,000?

• 5% paid on the property value from ￡300,001 and ￡500,000?

• If the property value is ￡500,001 or more, first time buyers must pay stamp duty at the regular rates outlined above.?

How Conveyancers Can Prepare?

This is likely to be a very busy period for conveyancers, with many buyers eager to move in before the changes take hold. To help them navigate this period effectively, consider these key steps:?

? Set Clear Expectations – As the deadline approaches, pressure to complete transactions in time is likely to increase. Clients should be made aware of realistic timelines, potential delays, and the risks of missing the cut-off.?

? Ensure Clients Are Financially Prepared –?Missing the deadline could mean paying thousands more in Stamp Duty.?It’s essential that clients understand this and have made financial provisions to avoid last-minute complications.?

? Streamline Processes Where Possible – With an expected increase in transaction volume, efficiency will be key. Ensuring paperwork is in order, keeping clients informed, using technology to save time where possible, and maintaining strong communication with lenders and other parties can help prevent unnecessary delays.?

? Consider Operational Capacity – If you’re expecting a surge in activity, consider taking on temporary assistance to help you manage your workload and meet clients’ expectations.?

Looking Ahead?

While the stamp duty changes may bring short-term pressures, they also highlight the value of clear, proactive advice from conveyancers. By preparing clients in advance, setting realistic expectations, and streamlining processes, conveyancers can help buyers navigate this transition smoothly and provide an excellent service, even during busier times. ?