February 13 2023

United Kingdom Temporarily Increases Rates of Stamp Duty Land Tax

Source: IBFD Tax Research Platform News

The Stamp Duty Land Tax (Temporary Relief) Act 2023 received Royal Assent and became law on 8 February 2023.

This legislation gives effect to the increased thresholds for stamp duty land tax on residential property from 23 September 2022 until 31 March 2025 that were announced in the mini-budget, when Kwasi Kwarteng was Chancellor of the Exchequer.  During the time above, the basic rates for residential property are as follows:

Part of relevant consideration (GBP) Percentage (%)
Up to 250,000 0
250,000 – 925,000 5
925,000 – 1,500,000 10
Over 1,500,000 12

 

The higher rates of stamp duty land tax for additional dwellings are:

Part of relevant consideration (GBP) Percentage (%)
Up to 250,000 3
250,000 – 925,000 8
925,000 – 1,500,000 13
Over 1,500,000 15

 

Rates of stamp duty land tax chargeable in respect of rent are:

Rate bands (GBP) Percentage (%)
0 – 250,000 0
Over 250,000 1

First-time buyers have an increased exemption from tax if the consideration does not exceed GBP 425,000 (previously GBP 300,000) and the 5% rate will apply above this, up to a threshold of GBP 625,000 (previously GBP 500,000).

From 1 April 2025, the rates and thresholds will return to the previous levels.