For the first time in over 14 years, Labour has unveiled its much-anticipated budget. There has been key changes concerning residential property, from stamp duty to capital gains tax.
Here’s a quick summary detailing the key changes for residential property owners, sellers and investors:
Stamp Duty Land Tax
- The surcharge on second homes, buy to let properties and companies buying residential property rises from 3% to 5%, effective from 31 October 2024. If you have already exchanged contracts prior to 31 October 2024, then you will only pay the 3% surcharge.
- No reference was made to extending the current SDLT Rates.
- From 1 April the SDLT will revert back to the rates that were in place before the September 2022 budget i.e. no SDLT will be payable on the first £125,000 of your purchase. For completions before 31 March 2025 no SDLT is payable on the first £250,000.
- Currently, first time buyers do not pay any Stamp Duty Land Tax on the first £425,000 of the purchase price and 5% on the portion up to £625,000. This is due to end on 31 March 2025. From 1 April 2025 no Stamp Duty Land Tax is payable on the first £300,000 of the purchase price and 5% on the portion up to £500,000.
- If you are in the process of purchasing a property you will need to factor in potential increases in SDLT in the event that your moving date is likely to take place from 1 April 2025.
Capital Gains Tax
- Capital Gains Tax is a tax on the profit you make when you sell a property (or other asset) that has increased in value.
- Capital Gains Tax rates for residential properties are not changing.
- The current rates for residential properties are 18% (standard rate) and 24% (higher rate).
- Capital Gains Tax rates are rising for non residential assets.
How Moore Barlow can help
Moore Barlow have experience in the sale and purchase of all kinds of property whether they be in the town, on the coast or in the countryside. We’re one of the most respected sets of property lawyers in the South of England.
With offices stretching from the bright lights of the City, down the Surrey Hills to the tranquillity of Lymington, our Residential property lawyers have local knowledge. Clients keep coming back to us with different types of transactions at different stages of their lives. The first flat in London; the family home; a house in its own grounds; an investment opportunity; a cottage to retire to; downsizing to help the children or grandchildren. We are there every step of the way.
Conveyancing has become commoditised and cheap legal offers abound. But high volume firms tend to have a tick box mentality. We don’t do ‘volume’, preferring to provide a service which is as swift as it is caring, and absolutely bespoke.
