Autumn Statement introduces sunset clause to SDLT relief

Chancellor Jeremy Hunt announced in the Autumn Statement on 17 November 2022 that the reduction in stamp duty land tax (SDLT) introduced by his predecessor would be made temporary, with a sunset clause ending the relief in March 2025¹. The relief itself had been announced on 23 September 2022 by then Chancellor Kwasi Kwarteng as a permanent reform among a number of taxation changes¹.

The measures increased three thresholds at which SDLT on residential property begins to be paid¹:

The changes took effect immediately after the House of Commons approved a Provisional Collection of Taxes Motion under the Provisional Collection of Taxes Act 1968¹. SDLT applies in England and Northern Ireland only, with separate property transaction taxes in Scotland and Wales¹. It is charged on a slice basis, so more expensive properties face progressively higher rates¹. The Office for Budget Responsibility said SDLT raised £14.1 billion in 2021-22, of which £10 billion came from residential property and £4.1 billion from non-residential property¹.

To make the reduction temporary, the government tabled amendments to the bill before the Committee of the Whole House stage. This, alongside the bill's third reading, happened on 10 January 2023¹. The bill had been introduced in the House of Commons as the Stamp Duty Land Tax (Relief) Bill 2022-23 on 24 October 2022¹, and the resulting Act received Royal Assent on 8 February 2023¹. The Act increases the thresholds until 31 March 2025¹.

The proposed end of the SDLT holiday on 31 March 2025 was not debated in the House of Commons during the Autumn Statement on 17 November¹. The Library briefing records that the response to the cut ending in March 2025 was not heavily discussed among industry experts afterwards: some said the cut would hopefully result in a stronger start to 2023, others praised the overall Autumn Statement package, and others criticised the proposed end of the cut, saying it would put first-time buyers in a significantly worse-off position¹. The Institute for Fiscal Studies welcomed the reduction but pointed out that the increase to First Time Buyers' Relief would create a higher cliff-edge for properties falling just beyond the £625,000 threshold, and the Resolution Foundation said the impact would be uneven, with a majority of the benefit located in London and the South of England¹. The Financial Times quoted property sector experts predicting the measure would not hugely support buyers or the housing market, saying its impact could be overshadowed by higher borrowing and mortgage costs¹.

Why it matters for households

Anyone buying residential property in England and Northern Ireland is affected by the thresholds, which apply to purchases completed before 31 March 2025¹. A buyer pays nothing on the portion of the price up to the nil rate band, and first-time buyers have a higher band and a higher maximum purchase price for relief¹. Because the relief is temporary, the thresholds are set to revert when it ends, so the amount of SDLT due on a purchase depends on when it completes¹. The briefing notes that the increase to first-time buyers' relief creates a cliff-edge for properties just above £625,000, and that the benefit is unevenly distributed, with a majority falling in London and the South of England¹.

What happens next

The Act received Royal Assent on 8 February 2023 and the increased thresholds apply until 31 March 2025¹. No further steps beyond that date are set out in the briefing. For more on buying a home, see the site's home-buying hub.