The Autumn Budget announced on October 30th included several key updates that will affect homeowners, first-time buyers, and landlords. The main changes relate to Stamp Duty and Capital Gains Tax but we have summarised the main points below:
The IHT threshold will remain frozen at £325,000 until 2030.
Non-dom status, and its associated tax benefits, will be removed from April 2025. Some believe that this move could make the UK a less attractive base for some high-net-worth international buyers and could have an impact on the top end of the property market.
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The annual ATED charge will be increased by the September 2024 CPI figure of 1.7% for the 2025/26 chargeable period:
Property Value Band | Annual Charge |
|---|---|
£0.5m - 1m | £4,450 |
£1m - 2m | £9,150 |
£2m - 5m | £31,050 |
£5m - 10m | £72,700 |
£10m - 20m | £145,950 |
£20m+ | £292,350 |
In summary, the stamp duty rates in England until 31 March 2025 are as follows:
Purchase Price | Main Residence | Sedcond Home/ Additional Property |
|---|---|---|
Up to £250,000 (£425,000 for first time buyers) | 0% | 5% |
£250,001 - £925,000 | 5% | 10% |
£925,001 - £1,500,000 | 10% | 15% |
£1,500,001 + | 12% | 17% |
The Main Residence rate applies applies to relevant portion of the purchase price. The £425,000 first-time buyer stamp duty threshold does not apply if the property purchased costs more than £625,000 – if it does, the £250,000 threshold applies
From 1 April 2025, the stamp duty rates in England will be changing to:
Purchase Price | Main Residence | Sedcond Home/ Additional Property | |
|---|---|---|---|
Up to £125,000 (£300,000 for first time buyers) | 0% | 5% | |
£125,001 - £250,000 | 2% | 7% | |
£250,001- £925,000 | 5% | 10% | |
£925,001 - £1,500,001 | 10% | 15% | |
The Main Residence rate applies applies to relevant portion of the purchase price. The £300,000 first-time buyer stamp duty threshold does not apply if the property purchased costs more than £500,000 – if it does, the £125,000 threshold applies
The Budget could be considered relatively benign from a property point of view, with no totally unexpected measures and the Chancellor focusing on businesses to take the brunt of the additional tax burden.
Changes to Capital Gains Tax and Stamp Duty on Additional Properties took affect almost immediately, and therefore gave buyers very little opportunity to react in time, however, buyers still have the opportunity to make a modest tax saving if they complete their purchases before the nil-rate Stamp Duty Tax band changes on 1st April 2025.
As with any tax change, individuals will be affected differently depending on their personal situations so we highly encourage you to consult your estate agent or tax adviser for tailored advice if you are planning a property transaction in the near future.
£1,500,001 + |
12% |
17% |