SDLT Changes, 23rd September 2022

23 September, 2022

Increase in the nil-rate thresholds for residential property

The Chancellor has announced that, with effect from today, the SDLT nil-rate threshold for residential property has been increased from £125,000 to £250,000. The nil-rate threshold for First Time Buyers’ Relief is also increased from £300,000 to £425,000 and first time buyers can now claim relief on properties purchased for up to £625,000 (an increase from £500,000). 

HMRC colleagues have told us they are working on updating the Gov.UK calculator and the return portal as quickly as possible but currently they do not reflect the new thresholds. Messages have been placed on both systems advising customers of the need to use the Gov.UK guidance for help in calculating the SDLT they owe for transactions on or after 23 September. Until the return portal has been updated, customers will need to overwrite the figure of tax calculated by the system with the correct amount. 

For transactions involving First Time Buyers’ Relief, where the consideration is over £500,000 the return portal cannot at present accept a return with a First Time Buyers’ Relief claim. Therefore HMRC ask customers buying properties for between £500,000 and £625,000 to select ‘no’ at 1.9 of the return when asked if relief is being claimed, and to instead enter the amount of tax payable using the rates for First Time Buyers shown in the guidance.

We will provide an update as soon as HMRC confirm that systems have been updated to reflect the new thresholds.

Investment Zones

The Chancellor has also announced the government’s intention to establish Investment Zones in regions across the UK.

An SDLT relief is under consideration for Investment Zones for land and buildings bought for use or development for commercial purposes, and for purchases of land or buildings for new residential development.  Further information about the relief will be published in due course.

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