SDLT – Why is it back in the headlines?

By Justine Simms

Senior Associate Solicitor

24 September 2025

Insights News

We have all seen the reports in the press about the former deputy prime minister, Angela Rayner. It comes as a stark reminder to home buyers that SDLT is a personal tax return and HMRC can investigate and pursue any under payment.

SDLT is not a new tax, but the rules around it have changed significantly in recent years. Conveyancers are now dealing with a complex system created by legislation that has introduced and withdrawn a number of permanent and temporary rates and reliefs.

As conveyancers we rely on the information that home buyers provide, so if this information is incomplete or inaccurate it could result in the wrong SDLT being paid. It is important to remember that Conveyancers are not tax specialists and cannot provide SDLT advice. If there is any uncertainty or the matter is complex, then the home buyer should seek specialist SDLT advice.

With the recent announcement of the Autumn Budget, the focus in the press has now shifted to what SDLT changes there might be in the Chancellor’s, Rachel Reeves, budget speech on 26 November.

It’s impossible to predict the outcome, but given that SDLT generates over £10bn a year it’s unlikely to be scrapped, but speculation has been building that there could be possible changes to SDLT such as:

• A new National Property Tax. This would be a proportional tax paid yearly on houses purchased above £500,000. This would replace the current system where home buyers pay the SDLT upfront on purchase. It’s rumoured the rate for houses valued between £500,000 and £1m could be 0.54% and a higher rate for houses over £1m.

• A new tax on home sales replacing the current system where SDLT is paid by the home buyer at the point of purchase. It’s reported that the seller, rather than buyer, would pay SDLT on properties sold for over £500,000.

• A “mansion tax” on homes valued above £1.5 million. This targets high value properties and home owners could pay an annual tax based on the value of their property. The rate could also be banded in relation to property value and reassessed regularly, similar to Council Tax.

• A staggered SDLT payment made in instalments over several years rather than an upfront payment on purchase. There are even suggestions it could be achieved through a government loan scheme.

With so much speculation and uncertainty, it is difficult for buyers and sellers to know what to do. Ultimately, they will need to decide if it would benefit them to complete before the Autumn Budget and, if they don’t, to ensure they have budgeted for any increase or change to SDLT.

What we can be certain about is that Conveyancers will be watching the budget speech very closely and bracing themselves for any further major SDLT reforms.

If you have any questions about the contents of the article, or you would like to speak to a member of our Residential Property team, you can contact us here.

Disclaimer: General Information Provided Only
Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.