Changes to Stamp Duty thresholds will affect homeowners
A recent Government announcement stated changes to Stamp Duty thresholds that will have some homeowners considering selling up – moving faster than they planned. Sellers will want to take advantage of the current thresholds before they get lowered at the end of March 2025.
What is stamp duty and who needs to pay it?
Stamp Duty Land Tax (SDLT) is a tax due if if you buy a property or land over a certain price in England and Northern Ireland, external.
You pay the tax when you:
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buy a freehold property
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buy a new or existing leasehold
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buy a property through a shared ownership scheme
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take on a mortgage or buy a share in a house
The amount of stamp duty to pay depends on the cost of the property, whether it will be used for residential purposes, and whether you own any other property.
How much is stamp duty?
At the moment, if your home is valued at under £250,000 you won’t pay stamp duty. The threshold if you’re buying your first property is £425,000.
These higher thresholds will end in March 2025, when they are expected to revert to previous levels – £125,000 or £300,000 for first time buyers.
Existing owners of residential property worth £40,000 or more, who buy another property (or a part of one), have to pay an additional 3% on top of these rates and this will rise to 5% from 31 October.
Act now pay less
Homeowners can avoid paying the higher rates of Stamp Duty by selling up before they kick in.
Avoid knotweed risk
When selling a house with Japanese knotweed it’s always advisable to find out if knotweed is on the property. Neglecting to declare knotweed when selling comes with legal implications, however this can be avoided if a Knotweed Management Plan is in place (preferably with a knotweed guarantee). This will give purchasers buying a property with Japanese knotweed the confidence to put in an offer, as the Plan will satisfy most mortgage lenders and enable the sale to proceed.
The quickest and most accurate way to find out if knotweed is present is to have a professional survey carried out. This will provide you with a comprehensive report of the findings and a quote for a management plan or options for complete removal.