Caroline Foulger comments on the hidden costs of downsizing and the impact of stamp duty land tax in Saga
Caroline’s comments were published in the Saga, 11 September 2025, and can be seen here.
Caroline Foulger, Partner in our Private Client department, offers insight into the financial and legal considerations facing older homeowners looking to downsize.
While often seen as a practical and cost-effective move, Caroline highlights how Stamp Duty Land Tax (SDLT) can introduce unexpected costs that may reduce the financial benefits of buying a smaller property.
SDLT is a tiered tax applied to property purchases in England and Northern Ireland, and even modestly priced homes can attract significant charges. She explains that these costs are frequently overlooked, catching many downsizers off guard especially when the new property exceeds lower tax thresholds.
The article also outlines SDLT complexities across the UK, including different rules in Scotland and Wales, and additional considerations for second homes, trusts, and gifted properties. Caroline warns that arrangements involving mortgages or family transfers can trigger unforeseen tax liabilities, making professional advice essential.
Caroline’s emphasises the importance of understanding the full tax picture before making property decisions. She advises older homeowners to seek specialist legal and financial guidance to avoid hidden costs and ensure their move is both informed and financially sound.
Read the full article on the Saga website [external link].