The Stamp Duty Land Tax (SDLT) is an HMRC tax that must be paid when purchasing property or land in England and Northern Ireland.

The Government introduced a temporary threshold increase to the SDLT thresholds in September 2022. This temporary threshold increase is due to end on 31^st March 2025, meaning transactions completed after this date will be subject to the increased rates.

The current standard residential property rates are:

Property price £                                          SDLT Rate %

Up to £250,000                                           0

£250,001 to £925,000                                5

£925,001 to £1,500,000                            10

Above £1.5 million                                    12

From 1st April 2025, the standard residential property rates will be:

Property price £                                          SDLT Rate %

Up to £125,000                                           0

£125,001 to £250,000                                2

£250,001 to £925,000                                5

£952,001 to £1.5 million                           10

Above £1.5 million                                     12

Please refer to the government guidance for the latest Stamp Duty Land Tax rates.

A noticeable surge in property and land purchases is expected as the deadline approaches. Buyers are eager to finalise their transactions before this crucial date, driven by urgency.

With time being of the essence, individuals and investors must act swiftly and decisively to ensure no late hiccups in the transaction process. 

Why is it important to get independent legal advice?

Most transactions involving a personal guarantee or where a party is entering into obligations relating to borrowing by another party will require independent legal advice.

Lenders often cannot progress until a qualified solicitor provides a certificate confirming that independent legal advice has been given. Yet the requirement for independent legal advice typically materialises towards the end of a transaction. This makes accessing expert, fast and affordable independent legal advice fundamental to avoiding delay and disruption and keeping timelines on track.

Buyers must consider the importance of obtaining Independent Legal Advice (ILA) as early as possible when purchasing a property. This proactive approach helps in understanding the legal aspects of the transaction but also ensures that all potential issues are addressed without delay.

Therefore, if any Independent Legal Advice is needed, we recommend that buyers address it now rather than wait until the last minute, risking not completing it in time and incurring a much larger SDLT liability.

Why instruct Phelan Independent?

• A fast turnaround with advice is guaranteed within 48 hours of instruction acceptance, and documents are provided (usually on the same working day).
• Access nationally to highly qualified solicitors committed to providing a personalised service to fulfil legal and banking requirements, with in-person meetings available at no extra cost where required.
• A fixed fee starting from £225 (inclusive of VAT) with discounted rates available for multiple instructions or clients of NACFB members.

For more information on the new SDLT tax rates or independent legal advice required on purchases, please email  enquiries@phelanindependent.co.uk.

Please note nothing in this blog constitutes legal advice.