Higher rates announced for additional dwellings and companies
Measures announced in the Autumn Budget 2024 increase the higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties by individuals and purchases of residential properties by companies from three to five percentage points above the standard residential rates of SDLT.
The measure also increases the single rate of SDLT payable by companies and other non-natural persons when purchasing residential properties worth more than £500,000, from 15% to 17%.
Higher rates of SDLT for purchases of additional residential property by individuals and companies.
Legislation will be introduced in Finance Bill 2024-25 to amend Table A at paragraph 1(2) of Schedule 4ZA FA 2003 increasing the rate of tax payable.
For transactions with an effective date between 31 October 2024 and 31 March 2025, the rates are as follows:
Relevant consideration |
Percentage |
So much as does not exceed £250,000 |
5% |
So much as exceeds £250,000 but does not exceed £925,000 |
10% |
So much as exceeds £925,000 but does not exceed £1.5m |
15% |
The remainder (if any) |
17% |
For transactions with an effective date on or after 1 April 2025 those rates are as follows:
Relevant consideration |
Percentage |
So much as does not exceed £125,000 |
5% |
So much as exceeds £125,000 but does not exceed £250,000 |
7% |
So much as exceeds £250,000 but does not exceed £925,000 |
10% |
So much as exceeds £925,000 but does not exceed £1.5m |
15% |
The remainder (if any) |
17% |
Single rate of SDLT payable by companies and non-natural persons on purchases of dwellings for more than £500,000.
Legislation will be introduced in Finance Bill 2024-25 to increase the single SDLT rate of charge for acquisitions of higher threshold interests by companies and non-natural persons from 15% to 17%.