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Information on Stamp Duty Land Tax (SDLT) budget changes

Last updated: 29 November 2017

The budget set out a number of changes to the SDLT regime. The changes will be made in the Finance Bill 2017-2018.

SDLT legislation will prevent abuse of relief for replacement of a purchaser’s only or main residence, by requiring the purchaser to dispose of the whole of their former main residence, and to do so to someone who is not their spouse.

Other changes include:

SDLT: minor amendments to higher rates

Minor amendments to provide relief in certain cases including:

  • where a divorce-related court order prevents someone from disposing of their interest in a main residence,
  • where a spouse or civil partner buys property from another spouse or civil partner,
  • where a deputy buys property for a child subject to the Court of Protection,
  • where a purchaser adds to their interest in their current main residence.

Legislation will be introduced in Finance Bill 2017 to 2018.

SDLT: Relief for first time buyers

A relief for first time buyers of residential properties costing no more than £500,000. First time buyers will pay no SDLT on the first £300,000 of the purchase price, with the remainder being charged at 5 per cent. No relief will be available where the total consideration exceeds £500,000.

The relief is not time limited. Legislation will be introduced in Finance Bill 2017 to 2018.

A guidance note is available on gov.uk, together with the draft legislation and explanatory note.

First time buyers can use the gov.uk calculator to work out their stamp duty land tax liability. To claim relief, code 32 should be entered at box 1.9 of SDLT return. If code 32 is entered on the online return, the return will calculate the tax due, except where the first time buyer is being granted a new lease. In such cases the gov.uk calculator should be used to work out the tax due.

SDLT: Changes to the filing and payment process

Following the announcement in the 2017 spring budget, the SDLT filing and payment window reduction from 30 days to 14 days would be delayed until after April 2018. It has been confirmed that the changes will apply to land transactions with an effective date on or after 1 March 2019. Improvements are planned to the SDLT return which aim to make compliance with the new time limit easier.

Legislation will be introduced in Finance Bill 2018 to 2019.

ATED: 2018 to 2019 annual chargeable amounts

The ATED annual charges will rise 3 per cent from 1 April 2018 in line with the September 2017 Consumer Prices Index. A treasury order will confirm the charges.

The new rates will be:

Property valueAnnual chargeable amounds for the 2017-18 chargeable periodAnnual chargeable amounts for the 2018-19 chargeable period
£500,001 - £1,000,000£3,500£3,600
£1,000,001 - £2,000,000£7,050£7,250
£2,000,001 - £5,000,000£23,550£24,250
£5,000,001 - £10,000,000£54,950£56,550
£10,000,001 - £20,000,000£110,100£113,400
£20,000,0001 and over£220,350£226,950

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