{"id":21302,"date":"2025-02-06T10:54:20","date_gmt":"2025-02-06T10:54:20","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/partners-blog\/?p=21302"},"modified":"2025-02-06T10:54:35","modified_gmt":"2025-02-06T10:54:35","slug":"expert-advice-from-moore-thompson-on-changes-to-stamp-duty-land-tax","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/partners-blog\/expert-advice-from-moore-thompson-on-changes-to-stamp-duty-land-tax\/","title":{"rendered":"Expert advice from Moore Thompson on changes to Stamp Duty Land Tax"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Recent changes to Stamp Duty Land Tax (SDLT) will have an impact on property buyers, particularly those purchasing additional homes, buy-to-let properties, or making larger purchases through corporate entities.<\/p>\n

Effective from 31 October 2024, the surcharge for Higher Rates for Additional Dwellings increased from three per cent to five per cent.<\/p>\n

Additionally, from April 2025, the temporary SDLT threshold increase will end, reverting the threshold for general SDLT from \u00a3250,000 back to \u00a3125,000.<\/p>\n

From April 2025, first-time buyers are also facing changes, with decreases to the Stamp Duty threshold, down to \u00a3300,000 from \u00a3425,000.<\/p>\n

These changes may seem complex, but with the right advice and planning, they do not have to derail your property plans.<\/p>\n

Higher rates for additional dwellings<\/strong><\/p>\n

The surcharge increase from three per cent to five per cent means buying a second home or investment property is now a great deal more expensive.<\/p>\n

For example, a \u00a3300,000 property now incurs an SDLT surcharge of \u00a315,000, compared to \u00a39,000 under the previous rate.<\/p>\n

\u201cBefore committing to a purchase, it is important to fully understand the financial implications,\u201d says Heather Bright<\/a>, Partner at Moore Thompson. \u201cFor many, this could mean reviewing their budgets and exploring whether the investment still fits their long-term plans.\u201d<\/p>\n

If you are unsure about affordability, consider working with our accountants to re-evaluate your cash flow and property strategy.<\/p>\n

Impact on first-time buyers and main residence purchasers<\/strong><\/p>\n

The Government\u2019s intention behind these changes is to create opportunities for first-time buyers and those purchasing a primary residence, with an estimated 130,000 more transactions expected over the next five years.<\/p>\n

However, the reversion of the SDLT threshold from \u00a3250,000 to \u00a3125,000 in April 2025 will also impact first-time buyers.<\/p>\n

\u201cIf you are buying your first home or main residence and have found a property below \u00a3250,000, moving quickly before April could save you thousands,\u201d advises Heather. \u201cOn the other hand, if you are not ready to proceed immediately, plan for the added costs and adjust your savings goals.\u201d<\/p>\n

Corporate buyers face higher costs<\/strong><\/p>\n

For corporate entities purchasing properties over \u00a3500,000, SDLT has increased from 15 per cent to 17 per cent.<\/p>\n

This change makes it crucial to structure investments carefully.<\/p>\n

\u201cBusinesses and investors need to think strategically about how they approach property purchases,\u201d explains Heather. \u201cThere may be tax reliefs or exemptions available that could reduce the overall SDLT liability, but they are often complex and require careful planning.<\/p>\n

\u201cFor example, <\/strong>Multiple Dwellings Relief (MDR) applies when a buyer purchases multiple residential properties in a single transaction or as part of a linked transaction.<\/p>\n

\u201cInstead of calculating SDLT based on the total purchase price, the tax is calculated on the average price of each property, then multiplied by the number of properties.<\/p>\n

\u201cThis can reduce the overall SDLT liability, especially for investors or developers purchasing multiple units in one go.\u201d<\/p>\n

If you are planning a corporate purchase, we can help ensure you are maximising any available opportunities to offset costs.<\/p>\n

How to approach property investments <\/strong><\/p>\n

The changes to SDLT mean that investors and homebuyers alike should revisit their financial plans.<\/p>\n

\u201cDon\u2019t wait until you are at the point of purchase to factor in these changes,\u201d says Heather. \u201cFor those looking to build or expand a property portfolio, consider whether the properties you are interested in will deliver the returns needed to justify the higher taxes.\u201d<\/p>\n

Additionally, this is a good time to reassess your existing portfolio. Selling underperforming properties or refinancing could provide the capital to navigate these increased costs.<\/p>\n

With these changes already in effect and further updates on the horizon, there is no better time to act.<\/p>\n

Our team is here to help you when it comes to purchasing properties and making sure that the changes to SDLT do not become an issue.<\/p>\n

If you would like to discuss your property plans or understand how these changes affect you, <\/strong>get in touch with us today<\/strong><\/a>.<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

HEATHER BRIGHT \/ PARTNER \/\u00a0heather@mooret.co.uk<\/a>\u00a0\/ SPALDING OFFICE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Recent changes to Stamp Duty Land Tax (SDLT) will have an impact on property buyers, particularly those purchasing additional homes, … Expert advice from Moore Thompson on changes to Stamp Duty Land Tax<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,12,29,25],"tags":[],"class_list":["post-21302","post","type-post","status-publish","format-standard","hentry","category-blog","category-heather-bright","category-property","category-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/comments?post=21302"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21302\/revisions"}],"predecessor-version":[{"id":21303,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/posts\/21302\/revisions\/21303"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/media?parent=21302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/categories?post=21302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/partners-blog\/wp-json\/wp\/v2\/tags?post=21302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}