What The New Stamp Duty Hike Means For Landlords
Labour is waging war on private landlords to tame what politicians see as a lawless frontier taking advantage of working people.
The Renters Rights Bill was introduced in the party’s first 100 days in power. This bill scraps Section 21 no-fault evictions and introduces various measures to regulate the private rented sector.
In her Autumn Statement 2024, Chancellor Rachel Reeve has hiked Stamp Duty Land Tax as a penalty for landlords and second homeowners wishing to invest in property to rent.
Read on to learn how the stamp duty hike impacts buy-to-let and holiday-let landlords.
Who pays the additional rate?
The new rates apply to transactions with an effective date (usually the date of completion) on or after October 31, 2024.
The new rates do not apply to transactions exchanged or completed before October 31, 2024.
Landlords in Scotland or Wales are unaffected and pay stamp duty at local rates set by the devolved governments.
When is stamp duty paid?
New owners must file an SDLT return and pay any stamp duty due within 14 days of completing the transaction - i.e., the property purchase date. The solicitor handling the transaction typically completes and files the return, but the new owner is responsible for meeting the deadlines.
How much is the new SDLT for landlords?
The new rates from October 31, 2024, until March 31, 2025, for individual landlords, companies owning residential property, and second homeowners are:
| Property value | SDLT additional rate |
| Upto £250,000 | 5% |
| £250,001 - £925,000 | 10% |
| £925,001 - £1.5 million | 15% |
| More than £1.5 million | 17% |
From April 1, 2025, a new 7% rate is introduced:
| Property value | SDLT additional rate |
| Upto £125,000 | 5% |
| £125,001 - £250,000 | 7% |
| £250,001 - £925,000 | 10% |
| £925,001 - £1.5 million | 15% |
| More than £1.5 million | 17% |
New SDLT Additional Rate examples
The average price of a home is £295,000 - here is how much stamp duty a landlord must pay before and after October 31, 2024:
| Before October 31, 2024 | ||
| Property value | Rate | Stamp duty payable |
| First £250,000 | 3% | £7,500 |
| Remaining £45,000 | 8% | £3,600 |
| Total | £11,100 | |
| After October 31, 2024 | ||
| First £250,000 | 5% | £12,500 |
| Remaining £45,000 | 10% | £4,500 |
| Total | £17,000 | |
The difference in cost is £5,900.
How much will the SDLT rate change raise?
The Office for Budget Responsibility (OBR), the government’s independent financial watchdog, calculates that the rate changes will result in landlords paying an extra £1.1 billion in stamp duty over the five years to 2030.
Can landlords claim back stamp duty?
Landlords can reclaim the total amount of stamp duty paid as an allowable business expense when calculating capital gains tax on the disposal of a property.
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