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Stamp Duty Land Tax

A number of changes are made to the Stamp Duty Land Tax (SDLT) regime. Generally, the changes increase the amount that a purchaser can pay for residential property before they become liable for SDLT.

The residential nil rate tax threshold is increased from £125,000 to £250,000.

The nil rate threshold for First Time Buyers' Relief is increased from £300,000 to £425,000 and the maximum amount that an individual can pay while remaining eligible for First Time Buyers' Relief is increased to £625,000.

The changes apply to transactions with effective dates on and after 23 September 2022 in England and Northern Ireland. These changes do not apply to Scotland or Wales which operate their own land transactions taxes.

There are no changes in relation to purchases of non-residential property.

Residential

Consideration (£) Rate (%)
0 - 250,000 0
250,001 - 925,000 5
925,001 - 1,500,000 10
Over 1,500,000 12

Non-residential

Consideration (£) Rate (%)
0 - 150,000 0
150,001 - 250,000 2
Over 250,000 5

Higher rates may be payable where further residential properties are acquired.

Land Transaction Tax

The Welsh government has also altered its rates in relation to land and buildings in Wales for transactions with an effective date on or after 10 October 2022.

Residential

Consideration (£) Rate (%)
0 - 225,000 0
225,001 - 400,000 6
400,001 - 750,000 7.5
750,001 - 1,500,000 10
1,500,000 and above 12

Non-residential

Consideration (£) Rate (%)
0 - 225,000 0
225,001 - 250,000 1
250,001 - 1,000,000 5
Over 1,000,000 6

Higher rates may be payable where further residential properties are acquired.

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