Stamp Duty Land Tax – Changes for first-time buyers on the horizon
John Hodge Solicitors
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Stamp Duty Land Tax ('SDLT') is a Government Tax paid by a purchaser of a property on completion. The amount of tax due is calculated based on various factors such as: whether the purchaser is a First Time Buyer, UK Resident, whether they already own another property etc. (see following link: Stamp Duty Land Tax: Overview - GOV.UK).
In September 2022, temporary relief measures were introduced by the then Government in a bid to boost property transactions and in particular to mobilise first-time buyers. It was hoped by many that the relief-deadline would be extended by the recent Autumn Budget, this has not been the case. Therefore, from 1st April 2025, the Stamp Duty Land Tax regime in England and Northern Ireland shall revert to the following:-
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With house prices and interest rates currently high, affordability on properties will be stretched further with the increase in SDLT to be paid by many new purchasers who were not previously affected. While the Government’s relief measures have been a lifeline for many, the above changes mean that many first-time buyers, in particular, could face higher upfront costs. Furthermore, with an average of 12-16 weeks to complete a property transaction, any last-minute decisions to sell or purchase may have an impact on both you and your chain leading to a highly competitive property market.
As a result, it is expected that a boom in sales and purchases ahead of the impending deadline could be on the horizon and with April 2025 fast approaching, now is the time to prepare.
Please do not hesitate to make contact with John Hodge Solicitors should you wish to discuss the upcoming changes and how they might affect you.