This article explains what Stamp Duty Land Tax (SDLT), more commonly referred to as Stamp Duty is, and how it affects the Bolton Property Market.
About the Author
Matthew Jones is the Managing Director of The Purple Property Shop a leading Bolton Estate Agent, and is also a qualified accountant. Matthew has performed approximately six thousand property valuations.
What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax payable when purchasing a property or land in the UK, it is also payable on the transfer of a lease. It is paid by the buyer and the rate varies depending on the price of the property.
Similar to income tax, SDLT is calculated incrementally with the property value being applied to the lowest bands first, once that band is used up then the remaining portion is moved into the next band and so on.
Who pays Stamp Duty Land Tax (SDLY)?
One common myth among property sellers is that they will have to pay SDLT on the sale of their property. In truth it is ONLY the buyer who pays SDLT
What is the rate of Stamp Duty Land Tax (SDLT)
In her first budget in November 2024, The Chancellor of the Exchequer, Rachel Reeves made various changes to The rate of Stamp Duty Land Tax. Some of these changes took effect straight away, other changes will take effect in April 2025.
The rate of SDLT varies not only on the value of the property but also on the type of purchaser.
The three categories of property purchaser are:
• Residential
• First Time Buyer
• Investor / additional home purchase
Each of these are discussed below and the SDLT rates for each are also shown
Residential Purchases (excluding first time buyers)
The majority of house purchases are made by people who also have a property to sell, you may have heard the phrase ‘being in a chain’ this chain relates to the sequence of properties being sold (selling one to buy another).
For these purchases the following rates of SDLT apply.
Current Rates (up to 31st March 2025)
Property Value SDLT Rate
Up to £250,000 Nil
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1,500,000) 10%
The remaining amount (the portion above £1.5M) 12%
New Rates (From 1st April 2025)
Property Value SDLT Rate
Up to £125,000 Nil
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1,500,000) 10%
The remaining amount (the portion above £1.5M) 12%
This shows that the impact of the budget for this purchaser group will be disadvantaged after April if the property they are purchasing costs in excess of £125,000.
A property costing more than £125,000 will incur an additional 2% SDLT on the purchase value between £125,000 and £250,000 costing up to an additional £2,500 in SDLT.
First Time Buyers
Buying your first home is an exciting time in people’s lives, and the past conservative government introduced a concession to first time buyers who are buying a property (subject to the purchase price being below £625,000).
The previous Government allowed the nil rate band for first time buyers to be increased to £425,000.
In her budget of November 2024, the Chancellor reduced the nil rate threshold for first time buyers to £300,000 and also reduced the maximum purchase price to £500,000.
Therefore, first time buyers who are buying a property between £500,000 and £625,000 will be subject to SDLT at the normal rates without benefitting from the first time buyer relief if their purchase falls after 1st April 2024.
In addition, after 1st April 2024 the nil rate band is being narrowed by £125,000 for first time buyers, therefore a first time buyer buying a property in excess of £300,000 could pay up to an additional £6,250 in SDLT
Investors / Additional Home Purchases
If you are buying an investment property or an additional property then you will be subject to an additional 5% Stamp Duty Land Tax on top of the rates shown for a single property above.
If you are replacing your current home but there is an overlap between selling your property and purchasing the new one then you have up to three years to reclaim the additional stamp duty paid once your main residence has been sold.
Selling Your Property
Using a credible Bolton Estate Agent to sell your Bolton property ensures that your sale is managed effectively and the best price for your sale is achieved.
We achieve exceptional results by providing you with the highest quality marketing and give you the maximum exposure for your property, ensuring we quickly find you the best purchaser for your Bolton property.
Here at The Purple Property Shop we have sold approximately three thousand properties over the last fifteen years and are experts in our field.
When choosing a Bolton Estate Agent for your Bolton property, be sure to make sure you are choosing an agent that is accredited with either the NAEA or ARLA as these organisations ensure that their member agents conform to very high professional standards.
If you would like further information about how we can help you sell or to book a free valuation, give us a call on 01204 598979 or email Kelly (branch manager) at kelly@purplepropertyshop.com
