Stamp Duty Update for Landlords

There’s been a huge amount of turmoil within the Government over the last few months, with various new leaders and policy u-turns, but the Stamp Duty Land Tax (SDLT) reduction announced during the last mini-budget on the 23^rd September by the then-chancellor Kwasi Kwarteng remains in place.

In this article we’re summarising the Stamp Duty reductions and giving you an update on what this could mean for you as a landlord.

What changes have been made to the SDLT?

In order to help boost the housing market and encourage economic growth, Kwasi Kwarteng announced that SDLT would be reduced in England and Northern Ireland effective from the 23^rd September 2022. The changes mean that the residential nil-rate threshold has been doubled – increasing from £125,000 to £250,000 – offering a saving of £2,500 for many buyers and pushing an estimated 200,000 out of Stamp Duty territory completely!

Do these changes apply to landlords?

Yes – the SDLT reduction is available to landlords too. However, the 3% surcharge for additional properties still applies. It’s predicted that the SDLT reduction will offer landlords a wider pool of properties to choose from, yet experts also predict that it could drive both house prices and demand even higher.

Where can I find out how much Stamp Duty I will owe?

The Gov site has a SDLT calculator you can use to predict how much Stamp Duty you’re likely to owe. You can also find out more information about the new SDLT regulations via the Stamp Duty policy paper.

If you’d like more information about how to minimise your tax liability overall, please don’t hesitate to get in touch. We have an experienced team who specialise in landlord accounting and can help you ensure that your portfolio is as tax efficient as possible. Find out more about our landlord accounting services or request a free consultation.