UK Stamp Duty Changes from April 2025: What Buyers Need to Know
06/03/2025
From 1st April 2025, significant Stamp Duty Land Tax (SDLT) changes will take effect, impacting homebuyers, first-time buyers, and property investors. With reduced tax-free thresholds and higher costs for additional properties, now is the time to consider completing transactions before the changes come into force.
Current SDLT Rates (Until 31st March 2025)
Main Residences
| Property Price | Current Rate |
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
First Time Buyer Relief
| Property Price | Current Rate |
| Up to £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| Over £625,000 | Standard rates apply |
Additional Properties (Buy-to-Let & Second Homes)
Buyers of second homes and buy-to-let properties pay an extra 5% on top of standard SDLT rates.
| Property Price | Current Rate (Including 5% Surcharge) |
| Up to £250,000 | 5% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5 million | 15% |
| Over £1.5 million | 17% |
What’s Changing from April 2025?
New SDLT Rates for Main Residences
| Property Price | New Rate (From 1/4/2025) |
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
🚨 Impact: The tax-free threshold is reduced from £250,000 to £125,000, meaning buyers will start paying SDLT sooner.
New First-Time Buyer SDLT Rates
| Property Price | New Rate |
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply |
🚨 Impact:
- The nil-rate threshold is cut from £425,000 to £300,000.
- The maximum price eligible for first-time buyer relief falls from £625,000 to £500,000.
- Buyers purchasing over £500,000 will lose first-time buyer relief.
New SDLT Rates for Additional Properties (From 1st April 2025)
| Property Price | New Rate (Including 5% Surcharge) |
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5 million | 15% |
| Over £1.5 million | 17% |
🚨 Impact:
- The starting threshold for additional property tax is reduced from £250,000 to £125,000.
- A new 7% tax band applies for properties between £125,001 and £250,000.
- Buy-to-let investors and second-home buyers will face higher SDLT costs.
Why Act Now?
With higher SDLT rates taking effect from April 2025, buyers should complete their purchases before 31st March 2025 to avoid additional costs.
How We Can Help
Here at JR Levins Solicitors, we have an expert team with a wealth of experience in all conveyancing matters to assist you.
Get in touch today to start your property transaction before the Stamp Duty increases take effect. We are here to help.
