Stamp Duty and the Autumn Budget – what can we expect?
We should not be surprised that we never really know where we stand with Stamp Duty for any length of time. After all, when it was first introduced in 1694 it was supposed to be a temporary measure to raise money for the war against France. Fast forward three centuries later and the temporary tax is still with us and is regularly up for review and reform.
The next government budget, the Autumn budget, will take place on 26th November 2025, and while it has already been hinted that a change is being considered, a Conservative pledge that they would abolish Stamp Duty, announced on 9th October 2025, has thrown the gauntlet down to the current government in terms of taking a bold new stance to an old system of tax.
What is Stamp Duty (or Stamp Duty Land Tax)?
Many people learn about stamp duty for the first time when they are purchasing a property and are told that they are liable to pay tax; so what is Stamp Duty Land Tax (SDLT)?
Stamp duty is a tax on legal documents: historically, certain documents such as legal agreements and deeds had to carry a physical stamp to show that the duty/tax had been paid. Over time this evolved and in modern times the “stamp duty” on property is collected electronically as Stamp Duty Land Tax (in England & Northern Ireland).
Since its introduction in 1694 to raise funds for war, the tax has been adapted, extended and reformed, and eventually in 2003, SDLT replaced the older “stamp duty” system for property transactions in England & Northern Ireland.
Because buying a home is a legal “transfer of property rights,” SDLT is charged on that transaction. The rate depends on the property price and whether the buyer is a first-time buyer, a home mover, owner of multiple residential properties, and whether they are a UK resident.
What changes might we see to Stamp Duty in the Autumn 2025 Budget?
A government Budget speech often includes proposals or tweaks to property taxes, and they can come in with immediate effect. Some of the possibilities being discussed include a new annual tax on home sales above £500,000, as part of a broader “proportional property tax” reform to replace or supplement SDLT. That could involve an annual tax being paid on the value of a property over a certain threshold and would be a dramatic move away from the one-off tax payments made on completion of a purchase.
Other rumoured changes include maintaining the current one payment system but shifting the burden of paying the tax to sellers rather than purchasers. The potential change has gained some support, with people seeing the logic that sellers will more often be in a better position to afford the tax compared to purchasers who are stretching their finances to fund a purchase.
One thing that does seem clear is that both Labour and the Conservatives favour maintaining the current stamp duty surcharge for property investors and second-home buyers. While Kemi Badenoch dramatically announced an abolition of Stamp Duty at the Conservative Party conference, she clarified that the tax would still apply to additional homes, buy-to-let properties, and properties purchased by companies.
Northern Ireland
In Northern Ireland, where the average house price was approximately £185,000 in the second quarter of 2025, there has always been a benefit from stamp duty thresholds being set to consider property prices across the UK. First time buyer relief is in place for properties up to the value of £500,000, and many of the potential changes being hinted at involve a similar threshold. While changes in the autumn budget could make for dramatic headlines, the reality of the impact for most Northern Ireland purchasers may not be quite as significant.
We can expect to hear more hints at the changes to be announced in the budget in the weeks and days running up to it. Solicitors and home purchasers will be listening with more than a keen interest as changes may be announced as having immediate effect, resulting in a change to the amount of tax payable on property purchases that are just days away from completing. There may equally be a date of implementation in the near future which, depending on the changes, could have purchasers pausing their plans to reap the benefit of a lower tax, or rushing to complete a higher amount of stamp duty would be payable.
If you’re purchasing a property in Northern Ireland and want to know how much stamp duty you would have to pay in your specific circumstances, you can get a free quotation on our legal fees calculator or get in touch if you have any questions.