The change in SDLT is one that will impact most that intend to purchase a property. The property market rose up to 22% between December 2018 and December 2023; and is predicted to raise a further 2.5% in 2025. The tax-free threshold will reduce from £250,000.00 to £125,000.00 for residential property. This means that buyers will need to pay SDLT on any property amount above £125,000.00. The tax-free limit for first-time buyers will decrease from £425,000.00 to £300,000.00. For purchases between £300,000.00 and £500,000.00, a 5% SDLT rate will apply. Additionally, the maximum property price eligible for first-time buyers’ relief will reduce from £625,000.00 to £500,000.00.

A useful tool is to refer to the Gov website where you will find further information on all changes, and a helpful SDLT calculator that will allow you to calculate what your SDLT liability could be if you were to purchase a property from 1^st April 2025 (www.gov.uk/stamp-duty-land-tax).

This is an example of a concept economists call ‘Fiscal Drag’. The combination of market inflation and the reduction in thresholds concludes to more taxpayers being ‘dragged’ into paying tax, or into paying tax at a higher rate. Therefore, more consumers will be liable for SDLT despite static tax rates. Significantly more transaction will be subject to SDLT, consequently it is more impart now than ever to be well informed on tax and how change can affect us as consumers.