From 31st March 2025, the current rate of SDLT payable is set to increase meaning that the purchase of residential property after this date will come at a much greater cost to buyers.
What is SDLT?
Stamp Duty Land Tax (SDLT) is a mandatory tax payable to HMRC on the purchase of all land and property in England and Northern Ireland over a certain price. It is payable within 14 days of completion of the purchase. The amount of SDLT payable is calculated on a case-by-case basis and will vary depending on several factors such as:
- Whether the property is residential, non-residential or mixed use
- Whether the buyer is a first time-buyer, is replacing a main residence or is purchasing an additional property
- Whether the buyer is an individual or a company
- Whether the buyer is a UK Resident.
A higher rate of SDLT is generally payable where the purchaser is buying an additional property, is non-UK Resident or is a company.
What is the current rate of SDLT?
The following rates currently apply to the purchase of residential property by individual purchasers who are resident in the UK and who do not own or hold a share in any additional properties
| Property Value | SDLT Rate |
| Up to £250,000.00 | Zero |
| The next £675,000 (the portion from £250,0001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
How will the rates differ after 31st March 2025?
The following rates will apply to the purchase of residential property from 1st April 2025 onwards
| Property Value | SDLT Rate |
| Up to £125,000.00 | Zero |
| The next £125,000 (the portion from £125,0001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
What might this change look like to a purchaser?
If you purchase a house in April 2025 for £295,000, the SDLT payable will be £4,750. If you had purchased the same property at the same price prior to the SDLT rates increasing from 31st March 2025, the SDLT payable would have been £2,250 resulting in a saving of £2,500.
How will the changes to SDLT affect first-time buyers?
First-time buyers can currently avail of first-time buyer’s relief which means that first-time buyers do not pay SDLT on purchases up to £425,000 provided the purchase price does not exceed £625,000. From 1st April 2025, the threshold for first-time buyer’s relief will be reduced from £425,000 to £300,000. If the purchase price exceeds £500,000, first-time buyer’s relief will not be available and the standard rates of SDLT will apply.
Additional properties or second homes.
You will usually have to pay 5% on top of the standard SDLT rates if buying a new residential property means that you will own more than one property. If you purchase an investment property (in addition to owning your own home) in April 2025 for £180,000, the SDLT payable will be £10,100. If you had purchase the same property at the same price prior to the SDLT rates increasing from 31st March 2025, the SDLT payable would have been £9,000 resulting in a saving of £1,100.
The clock is ticking!
It is just under 12 weeks until the amount of SDLT payable on the purchase of residential property will increase. Provided everything runs smoothly (which is often not the case!), most conveyancing transactions in Northern Ireland take at least ten to twelve weeks to complete from the date that the solicitor receives instructions.
McCay Legal are here to help with all of your Conveyancing needs. Tel; 02871 371705
Article written by our Associate Director Of Residential Conveyancing, Kirsty Holmes.