Do The Stamp Duty Changes Apply to Investment Properties?

The frenzy of fear caused by Kwarteng’s mini-budget is palpable across the economy.

Intended to herald a new era of economic growth, the mini-budget has done anything but.

However, the budget that includes reducing tax rises, and a reduction of income tax has a glimmer of hope for property investors in the form of changes to stamp duty thresholds. 

Key Changes Overall:

  • Properties people intend to live in will not incur any SDLT (Stamp Duty Land Tax) on any property up to £250,000
  • First time buyers won’t have to pay any stamp duty on property which is less than £425,000.
  • First Time Buyers Relief has increased to £625,000.

Who Pays Higher Rates of Stamp Duty?

Anybody that owns (even part ownership) more than one property worth over £40,000. This includes property abroad. 

This includes your spouse or partner (as you are considered a joint entity), anybody you are buying the property with or ownership on behalf of somebody under 18 – even in trust.

What About If I Buy 6+ Properties In One Transaction or Multiple Properties From The Same Seller?

Different rules apply and can be found here: 


What Were the Previous Stamp Duty Thresholds For Additional Properties?

What Are The New Stamp Duty Thresholds For Additional Properties?


*All figures are from the Government’s stamp duty website.


What Does This Mean For investors?

Essentially, this means that property investors will pay less stamp duty. Anything that saves money is, of course, to be welcomed.


How Much Money Could I Save?

Here’s an example based on an investment property worth £325,000:

Stamp Duty Costs:

Old Rules New Rules
3% on the first £125,000 = £3,750 3% on first £250,000 = £7,500
5% of the £125,000 after that = £6250 8% of the last £75,000 = £6000
8% of the last £75,000 = £6,000 N/A
Total Cost: £16,000 Total Cost: £13,500

Total saving: £2,500


How Can I Make The Most Of The Money Off?

Interested in making  a sturdy investment with extra savings? 

Book a call with one of our team to discuss your options!  


Amy Boutle

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