The UK’s Autumn Budget 2024 includes significant changes to Stamp Duty Land Tax (SDLT), especially impacting first-time homebuyers and general buyers:
1. For First-Time Buyers: Currently, they pay no stamp duty on properties up to £425,000 and receive relief up to £625,000. Starting April 1, 2025, this threshold will reduce, and they will only avoid stamp duty on properties priced up to £300,000, with relief capped at £500,000. For homes over £500,000, standard stamp duty rates will apply, marking an end to additional relief on higher-value properties. This change is expected to increase the upfront cost for first-time buyers purchasing homes in this range.
2. For All Other Buyers: The standard SDLT threshold for other property buyers will also decrease from £250,000 to £125,000, meaning SDLT will apply to any property valued over £125,000. This rollback reintroduces rates from before temporary relief measures implemented in 2020.
3. Abolition of Multiple Dwellings Relief: Effective from June 2024, this relief, which allows reduced stamp duty on properties purchased as part of multiple dwelling transactions, will no longer be available. This change particularly affects the build-to-rent sector and shared ownership projects, which relied on this relief to reduce tax costs in residential property investment.
These adjustments aim to bolster housing market accessibility for lower-income buyers and add a tax burden on higher-value transactions, aligning with broader fiscal strategies from the UK government
For more information and full detailed changes click
https://www.gov.uk/government/news/chancellor-chooses-a-budget-to-rebuild-britain
At Numericalz we are here to help you to see how this affects you and what you can do to plan your finances better. Call us today or book an appointment on https://test.cloud9digital.in/book-an-appointment/
