Changes to Stamp Duty Land Tax from 1 April 2025
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a compulsory tax payable to HM Revenue & Customs (HMRC) when purchasing property or land over a specific price in England and Northern Ireland. From 1 April 2025, significant changes to SDLT thresholds and reliefs will take effect. Here’s what you need to know.
SDLT is calculated based on the purchase price of the property or land, with rates varying depending on:
- Whether the property is residential, non-residential, or mixed-use.
- Eligibility for reliefs or exemptions, such as First-Time Buyer Relief.
- Applicability of higher rates, such as for additional property purchases.
Current SDLT Rates (Until 31st March 2025)
For residential properties, the following thresholds apply:
| Purchase Price Bands | SDLT Rate |
| Up to £250,000 | Zero |
| £250,001-£925,000 | 5% |
| £925,001-£1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-Time Buyers
First-time buyers currently benefit from relief as follows:
- No SDLT on purchases up to £425,000.
- 5% SDLT on the portion from £425,001 to £625,000.
- No relief available if the purchase price exceeds £625,000.
Higher Rates
Where the surcharge conditions are met then additional SDLT charges will apply if you already own another property or are a non UK resident or Company purchasing a residential property.
How will the SDLT changes on 1 April 2025 affect me?
For transactions completing on or after 1 April 2025, new SDLT thresholds will come into effect, altering how much tax buyers need to pay. Below are the key updates.
New SDLT Rates
| Purchase Price Bands | SDLT Rate |
| Up to £125,000 | Zero |
| £125,001-£250,000 | 2% |
| £250,001-£925,000 | 5% |
| £925,001-£1,500,000 | 10% |
| Over £1,500,000 | 12% |
The most notable change is the reduction of the zero-rate threshold, which will only apply to properties up to £125,000 (compared to the current £250,000).
A 2% rate will apply to properties that have a purchase price of between £125,001 and £250,000.
Adjustments to First-Time Buyer Relief
From 1 April 2025, first-time buyers will see reduced relief thresholds:
- No SDLT on purchases up to £300,000 (previously £425,000).
- 5% SDLT on the portion from £300,001 to £500,000 (previously £425,001 to £625,000).
- Purchases over £500,000 will not qualify for relief, and standard SDLT rates will apply.
Higher Rates
The higher rates for additional properties and purchases by non-UK residents and Companies will still apply on top of the new SDLT thresholds.
What Does This Mean for You?
These changes may significantly impact buyers across all property types, particularly first-time buyers and those purchasing in the lower price bands. If you are planning to buy a property, it may be beneficial to complete your transaction before 31 March 2025 to take advantage of the current SDLT rates and reliefs.
If you would like advice on how these changes might affect you or assistance with any property transaction, please contact your local office and ask to speak to the Residential Property Team to discuss your individual circumstances.