The Budget 2024: SDLT on second homes set to rise at midnight
“The government is supporting first-time and main home buyers by increasing the Higher Rates for Additional Dwellings of Stamp Duty Land Tax from 3% to 5% from 31 October 2024. These higher rates apply to purchases of second homes, buy-to-let residential properties and companies purchasing residential property and the increase will provide those looking to move home or purchase their first property with a comparative advantage over those purchasing additional property. This is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence. Those who exchanged contracts prior to 31 October 2024 are not affected by this rate increase”
Autumn Budget 2024
With all the rumours circulating about tax changes in the first Labour budget, an increase to the higher rates of SDLT was not on the list. The surprise announcement means not only a long and late night for most property lawyers, but yet another deterrent for domestic and overseas investors in the residential property market – where the top rate of tax is virtually now on par with VAT for those who are residents overseas. This will lead to the inevitable consequence of less rental stock at a time when the rental market is already facing challenges, and when being a landlord becomes increasingly less attractive with ever changing legislation.
This adds to the list of quirks to be aware of when purchasing a UK home. Visit our latest campaign hub to learn more.
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