From 1 April 2025, significant updates to Stamp Duty Land Tax (SDLT) will come into effect, potentially reshaping property transactions across England. Whether you’re a first-time buyer, a property investor, or an existing homeowner, understanding these changes is vital. At Burd Ward Solicitors, we’re here to guide you through these updates and help you navigate their impact on your property dealings.

What is SDLT?

Stamp Duty Land Tax (SDLT) is a government tax applied to property purchases in England. The amount payable depends on the property price, with higher-value transactions incurring higher rates. Knowing the SDLT rules is essential for anyone buying residential or commercial property.

Key SDLT Changes from April 2025

The upcoming SDLT changes aim to improve housing affordability and influence market behaviour. Here are the main updates:

1. Revised SDLT Rates for Residential Properties
   • Up to £125,000: 0% (no SDLT)
   • £125,001 to £250,000: 2%
   • £250,001 to £925,000: 5%
   • £925,001 to £1.5 million: 10%
   • Above £1.5 million: 12%
2. Updates for First-Time Buyers
   • SDLT-free threshold increases to £300,000.
   • Purchases between £300,001 and £500,000 will incur a 5% rate.
   • Properties exceeding £500,000 do not qualify for relief.
3. Higher Surcharge for Additional Properties

   The surcharge on buy-to-let and second homes will rise to 5% across all bands:

   • Up to £125,000: 5%
   • £125,001 to £250,000: 7%
   • £250,001 to £925,000: 10%
   • £925,001 to £1.5 million: 15%
   • Above £1.5 million: 17%
4. Green Homes Incentive

   Buyers of energy-efficient homes (EPC rating A or B) will enjoy reduced SDLT rates, paying 1% less across all bands.

5. Commercial Property Updates

   The lower SDLT band for commercial property transactions will increase from £150,000 to £200,000.

Who Will Be Most Affected by These Changes?

1. First-Time Buyers

   The increased SDLT-free threshold will help first-time buyers save thousands on property purchases.

2. Buy-to-Let Investors & Second Homeowners

   The higher surcharge makes additional property acquisitions more expensive, impacting investors and second-home buyers.

3. Sellers of Energy-Efficient Homes

   Properties with high energy efficiency (EPC A or B) may attract more buyers due to SDLT discounts.

4. Commercial Property Buyers

   New thresholds will require careful financial planning for those acquiring commercial properties.

Preparing for the SDLT Changes

As the property market reacts to these changes, here are some practical steps to consider:

• Plan Your Purchase Timeline: Decide whether to buy before or after 1 April 2025 based on the new rates.
• Improve Energy Efficiency: Enhance your property’s EPC rating to attract buyers and take advantage of SDLT discounts.
• Seek Expert Advice: SDLT calculations can be complex. Consulting experienced solicitors, like our team at Burd Ward, ensures compliance and maximizes potential savings.

Why Choose Burd Ward Solicitors?

Navigating SDLT changes can be challenging, but you don’t have to face it alone. At Burd Ward Solicitors, we specialise in property law and offer tailored legal advice to suit your needs. Our team of experts is here to support you with all aspects of conveyancing, from understanding SDLT rules to managing complex property transactions.

If you have questions about how the SDLT changes will affect you, get in touch with Burd Ward Solicitors. Let us provide the clarity and confidence you need for your property journey.

When you embark on the journey of buying or selling property, one of the key components you’ll encounter is conveyancing. Whether you’re a first-time buyer or a seasoned investor, understanding conveyancing and its importance is crucial for a smooth transaction.

What is Conveyancing?

Conveyancing is the legal process of transferring property ownership from one person to another. It encompasses all the legal and administrative work associated with transferring the title of the property. The process involves several stages, including:

1. Instruction: The buyer and seller each instruct a conveyancer to represent them during the transaction. Conveyancers are often licensed professionals or solicitors specializing in property law.
2. Pre-Contract: During this stage, the conveyancer will carry out various checks and searches, including checking the title deeds, local authority searches, and environmental reports. These searches ensure there are no issues affecting the property that could influence the sale.
3. Exchange of Contracts: Once both parties are satisfied with the checks and searches, contracts are exchanged. This stage is legally binding and typically involves the payment of a deposit by the buyer.
4. Completion: On the agreed completion date, the balance of the purchase price is transferred to the seller, and the buyer receives the keys to the property. The conveyancer will also ensure that the transfer deed is sent to the Land Registry to register the new owner.

For a more detailed look at the conveyancing process please see our dedicated buying and selling guides.

Why is the Process Important?

Conveyancing is a critical part of any property transaction for several reasons:

Legal Protection:

Conveyancing ensures that all legal requirements are met, protecting both the buyer and the seller. Your conveyancer will verify that the seller has the legal right to sell the property and will ensure the buyer doesn’t inherit any legal issues or encumbrances.

Risk Mitigation:

The various checks and searches conducted during conveyancing help identify potential risks such as boundary disputes, planning restrictions, or environmental hazards. Identifying these issues early can prevent significant problems down the line.

Financial Security:

By ensuring the correct transfer of funds and registration of the property with the Land Registry, conveyancing protects the financial interests of both parties. It prevents instances of fraud and incorrect payment allocations, which could have severe financial repercussions.

Smooth Transaction:

Conveyancers handle the complex paperwork, communicate with the other party’s conveyancer, and resolve any issues that arise, ensuring a smooth transaction process. This helps to eliminate stress and provides peace of mind to both buyers and sellers.

Compliance with Regulations:

Property transactions are subject to stringent regulations and legal requirements. A professional conveyancer ensures that your transaction complies with all relevant laws, safeguarding you against future legal challenges.

Settlement of Debts:

For sellers, conveyancing ensures that any existing mortgages or property-related debts are settled before the transfer of ownership. This ensures that the buyer receives a property free of encumbrances.

If you are looking to buy or sell a property and would like a quote, please contact us on 0151 639 8273 or email us at info@burdward.co.uk.