Stamp Duty Land Tax cuts
Previously announced cuts will remain in place until 31 March 2025
We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
On 23 September 2022, the government increased the nil-rate threshold of Stamp Duty Land Tax (SDLT) from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold paid by first-time buyers from £300,000 to £425,000.
The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000. This will now be a temporary SDLT reduction. The SDLT cut will remain in place until 31 March 2025 to support the housing market and the hundreds of thousands of jobs and businesses which rely on it.
Legislation will be introduced in the Stamp Duty Land Tax (Reduction) Bill to amend:
Table A of section 55(1B) (for purchases other than higher rates purchases) as follows:
Relevant consideration | Percentage |
Up to £250,000 | Nil |
The next £675,000 (the portion from £250,001 to £925,000) | 5% |
The next £575,000 (the portion from £925,001 to £1.5m) | 10% |
The remaining amount (the portion above £1.5m) | 12% |
Table A at paragraph 2(3) of Schedule 5 (for rent) as follows:
Relevant consideration | Percentage |
Up to £250,000 | Nil |
Over £250,000 | 1% |
Table A at paragraph 1 of Schedule 4ZA (for higher rates purchases) as follows:
Relevant consideration | Percentage |
Up to £250,000 | 3% |
The next £675,000 (the portion from £250,001 to £925,000) | 8% |
The next £575,000 (the portion from £925,001 to £1.5m) | 13% |
The remaining amount (the portion above £1.5m) | 15% |
Table A at paragraph 4 of Schedule 6ZA (for First Time Buyers’ Relief) as follows:
Relevant consideration | Percentage |
Up to £425,000 | Nil |
Any remainder not exceeding £625,000 | 5% |
In addition, the £500,000 specified in paragraph 1(2) of Schedule 6ZA is increased by £125,000 to £625,000. The effect will be to restrict First Time Buyers’ Relief to purchases where the amount paid is £625,000 or less, instead of the £500,000 or less currently applicable.