Stamp Duty Land Tax

Changes to government policy on taxes can happen at breakneck speed - especially when the markets do not like a raft of measures introduced by a Chancellor. Stamp Duty Land Tax (SDLT) is a tax which must be paid if property or land is purchased above a certain price threshold in England and Northern Ireland (the regime is somewhat different in Scotland and Wales).

From 23 September 2022, the threshold for residential properties was increased to £250,000 meaning that anyone purchasing a property for less than this sum will not have any SDLT to pay. Announced at the same time is a discount for first-time buyers meaning that they will pay less or no tax if they (and anyone they are purchasing with) are first-time buyers and the purchase price is £625,000 or less.

Less than one month from these threshold changes came a statement from the (next) Chancellor indicating that these changes would only be temporary and will end on 31 March 2025. Assuming that there are no other SDLT announcements in the forthcoming couple of years, this means that there is likely to be a rush to complete transactions before this date to ensure that buyers can take advantage of the reduced SDLT thresholds. Anyone thinking of buying and selling a property within the next couple of years should consider taking early legal advice from a property specialist. It is surprising how many conveyancing transactions are delayed or derailed due to problems with the seller's title or a failure to obtain appropriate consents for things like building work or the installation of windows. At a time when the property market is likely to be under pressure, it is fair to say that thinking ahead is likely to pay dividends.

To discuss this or any other property matter, contact us.