Stamp Duty Land Tax rates are changing from 1st April 2025 when the temporary increases to the thresholds that were put in place in September 2022 are due to come to an end. This will have an impact on everyone planning to move and more so for first time buyers.
Whether you are a first-time buyer, moving home, or investing in property, these changes will impact how much tax you’ll need to pay.
If you do want to take advantage of the current, more advantageous rates of SDLT it is important that you plan ahead and start working on your property transaction as soon as possible.
What is Stamp Duty Land Tax?
SDLT is a tax payable by a purchaser on land transactions in England and Northern Ireland.
It is a personal tax, and therefore, the calculation depends on your individual circumstances.
Why Are These Changes to SDLT Happening?
The adjustments are a rollback of the measures introduced in September 2022. The Government announced these changes in their October 2024 Budget. Whilst some changes came into effect immediately, some will come into effect on the 1st April 2025.
What are the changes?
Currently, no stamp duty is payable on properties up to £250,000. Above this threshold, the tax operates on a tiered system:
Main Residences
The rates of SDLT for main residences (not first-time buyers or non-resident buyers) currently looks like this:
On 1st April 2025 the tax-free threshold will decrease to £125,000, with new rate bands:
First Time Buyers
First-time buyers currently enjoy relief on properties up to £625,000, paying no SDLT on the first £425,000.
The relief for first-time buyers will be adjusted to:
Buy-To-Let and Second Homes
The SDLT rates for buy-to-let and second home property purchases currently looks like this:
From 1st April 2025, the SDLT rates for additional property purchases will change to:
The deadline of 31st March 2025 is fast approaching, and if you are considering purchasing a property and would like to take advantage of the current SDLT rates, we would strongly recommend moving forward with your conveyancing as soon as possible. Please note we cannot provide any guarantee that we will be able to progress your matter before this date and you should factor into your budget any potential increase in tax payable.
For further information, please contact our Residential Property Team.
We are here to ensure your property transaction plans go as smoothly as possible.
