2025 Stamp Duty changes

Residential conveyancer Gemma Williams summarises the 2025 Stamp Duty Changes.

From 1st April 2025, changes to Stamp Duty Land Tax (SDLT) in England will come into effect.

Whether you’re a first-time buyer, moving to a new home, or purchasing an additional property, these 2025 stamp duty changes could affect you. We detail below what you need to know to make sure you are able to prepare accordingly.

Stamp Duty Land Tax is one of the main costs (after the house price itself) when purchasing a property in England. The impending changes will alter the tax rates and thresholds. These changes will particularly affecting first-time buyers and those buying additional properties.

SDLT Rates (Valid Until 31st March 2025):

For Main Residences:

  • Up to £250,000: 0%
  • £250,001 to £925,000: 5%
  • £925,001 to £1.5 million: 10%
  • Above £1.5 million: 12%

For First-Time Buyers:

  • Up to £425,000: 0%
  • £425,001 to £625,000: 5%

For Additional Properties:

  • Up to £250,000: 5%
  • £250,001 to £925,000: 10%
  • £925,001 to £1.5 million: 15%
  • Above £1.5 million: 17%

New SDLT Rates (Effective From 1st April 2025):

For Main Residences:

  • Up to £125,000: 0%
  • £125,001 to £250,000: 2%
  • £250,001 to £925,000: 5%
  • £925,001 to £1.5 million: 10%
  • Above £1.5 million: 12%

For First-Time Buyers:

  • Up to £300,000: 0%
  • £300,001 to £500,000: 5%
  • It is important to note that purchases above £500,000 will no longer qualify for first-time buyer relief and will be subject to standard rates.

For Additional Properties:

  • Up to £125,000: 5%
  • £125,001 to £250,000: 7%
  • £250,001 to £925,000: 10%
  • £925,001 to £1.5 million: 15%
  • Above £1.5 million: 17%

What does this mean for buyers?

First-Time Buyers:
The SDLT “free” threshold will decrease from £425,000 to £300,000. Properties priced between £300,001 and £500,000 will incur a 5% SDLT on the amount exceeding £300,000. For purchases above £500,000, standard rates will apply.

For Example Purchasing a property for £350,000:

  • Before April 2025: £0 SDLT
  • From April 2025: £2,500 SDLT

For Home Movers (i.e. not a First Time Buyer):
The nil-rate band will drop from £250,000 to £125,000. Buyers will pay 2% SDLT on the portion between £125,001 and £250,000.

For Example: Purchasing a property for £350,000:

  • Before April 2025: £5,000 SDLT
  • From April 2025: £7,500 SDLT

For Additional Property Buyers:
An additional 2% SDLT will apply for properties priced between £125,001 and £250,000, increasing the rate from 5% to 7% for this band.

For Example: Purchasing an additional property for £200,000:

  • Before April 2025: £10,000 SDLT
  • From April 2025: £11,500 SDLT

What Should Buyers Do?

Plan & Prepare Ahead:
If you’re considering purchasing a property, completing the transaction before 1st April 2025 could save you thousands of pounds in SDLT.

Instruct your Experts in Advance:
With standard property transactions typically taking around 8 -12 weeks to complete, starting the process early in 2025 is advisable to avoid the higher rates. We would advise instructing a member of our conveyancing team as soon as possible.  You should also make sure that you engage with financial/mortgage advisers at an early stage.

Make Sure You Budget:
You should factor in the increased SDLT when planning your purchase. This could affect affordability and mortgage considerations. You also need to make sure that you will have the increased SDLT funds available in the event that a completion before 1st April 2025 is not achievable.

Consider How The Property Market May Affect Transactions:
A surge in property transactions may occur in early 2025 as buyers rush to beat the deadline, potentially leading to increased competition and higher property prices. A busier market will also mean busier Conveyancers and so it is important to make sure that you plan ahead of time and allow enough time for matters to be dealt with. You should also bear in mind that there may also be an impact on surveyors and valuations for mortgage lenders.

Slee Blackwell Solicitors are here to help you navigate these SDLT changes and will ensure that your transaction is completed smoothly and cost-effectively.

For further guidance on the 2025 Stamp Duty changes or a fixed fee quote for dealing with your transaction, contact our free legal helpline on 0333 888 0419 or email us at [email protected]

Picture of Gemma Williams

Gemma Williams

Gemma is a partner in our residential conveyancing department. She deals with all aspects of residential conveyancing, including sales, purchases, re-mortgages and transfers. With a background in Family and Probate law, Gemma is also able to help where a property transaction is required as a result of a relationship breakdown or the administration of an estate.
Picture of Gemma Williams

Gemma Williams

Gemma is a partner in our residential conveyancing department. She deals with all aspects of residential conveyancing, including sales, purchases, re-mortgages and transfers. With a background in Family and Probate law, Gemma is also able to help where a property transaction is required as a result of a relationship breakdown or the administration of an estate.

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