Changes to 2024 stamp duty in Jersey

Legislation came into force on 1 January 2024 to amend stamp duty, Land Transaction Tax ("LTT") and Enveloped Property Transaction Tax ("EPTT") rates.

The Finance (2024 Budget) (Jersey) Law 202- (the "Law") has important implications, particularly for first-time buyers, purchasers of high value properties and those seeking to purchase second homes on the island.

The relevant registration fees are still applicable in addition to the amended stamp duty rates.

First-time buyers

The Law brings some welcome news for prospective first-time buyers on the island. 

The maximum threshold for first-time buyers who are eligible for stamp duty relief has increased from £500,000 to £700,000. Any property with a value of more than £700,000 does not qualify for reduced stamp duty rates. 

The applicable stamp duty rates for first-time buyers apply as follows:

• up to £350,000: 0%;
• £350,000-£600,000: 0% in relation to the first £350,000 and approximately 1% thereafter;
• £600,000-£700,000: sliding scale; and
• over £700,000: no applicable first-time buyer rates.

Residential rates

The new stamp duty rates for those buying higher value properties as their main residence apply as follows:

• £10 - £50,000: approximately 0.5% (unchanged);
• £50,000 - £300,000: £250 on the first £50,000 and approximately 1.5% thereafter (unchanged);
• £300,000 - £500,000: £4,000 on the first £300,000 and approximately 2% thereafter (unchanged);
• £500,000 - £700,000: £8,000 on the first £500,000 and approximately 3% thereafter (unchanged);
• £700,000 - £1 million: £13,000 on the first £700,000 and approximately 3.5% thereafter (unchanged);
• £1 million - £1.5 million: £22,000 on the first £1 million and approximately 4.5% thereafter (unchanged);
• £1.5 million - £2 million: £39,500 on the first £1.5 million and approximately 5.5% thereafter (unchanged);
• £2 million - £3 million: £74,500 on the first £2 million and approximately 7.5% thereafter;
• £3 million - £6 million: £149,500 on the first £3 million and approximately 10% thereafter; and
•  £6 million and above: £449,500 on the first £6 million and approximately 11% thereafter.

The same increases are applicable to LTT and EPTT.

Buy-to-let rates

There is also an increase in stamp duty rates for anyone buying a second home or a residential property which will not be their principal residence.

The new rates apply as follows:

• £10 - £50,000: approximately 3.5% (unchanged);
• £50,000 - £300,000: £1,750 on the first £50,000 and approximately 4.5% thereafter (unchanged);
• £300,000 - £500,000: £13,000 on the first £300,000 and approximately 5% thereafter (unchanged);
• £500,000 - £700,000: £23,000 on the first £500,000 and approximately 6% thereafter (unchanged);
• £700,000 - £1 million: £35,000 on the first £700,000 and approximately 6.5% thereafter (unchanged);
• £1 million - £1.5 million: £54,500 on the first £1 million and approximately 7.5% thereafter (unchanged);
• £1.5 million - £2 million: £92,000 on the first £1.5 million and approximately 8.5% thereafter (unchanged);
• £2 million - £3 million: £134,500 on the first £2 million and approximately 10.5% thereafter;
• £3 million - £6 million: £239,500 on the first £3 million and approximately 13% thereafter; and
• £6 million and above: £629,500 on the first £6 million and approximately 14% thereafter.

The same increases are applicable to LTT and EPTT.

If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.