Stamp Duty Land Tax (SDLT) is a key cost for homebuyers in England. However, from the 1st April 2025, major changes are coming that will see the temporary tax relief introduced in 2022 come to an end.
This means higher tax bills for most buyers, including first-time buyers and home movers. Understanding these changes is crucial if you’re planning to buy a home in 2025. In this guide, we explain the key updates, how much more you might need to pay, and what you can do to prepare.
What’s Changing in April 2025?
The key SDLT changes coming into effect from 1 April, 2025, include:
The Nil-Rate Stamp Duty Threshold is Dropping
Currently, homebuyers do not have to pay SDLT on the first £250,000 of a property’s price. However, this tax-free threshold is halving to £125,000 from April 2025. This means more buyers will have to pay SDLT on a larger portion of their property’s value.
Reintroduction of the 2% Band
With the lower threshold, the 2% SDLT rate on properties priced between £125,001 and £250,000 is coming back. Currently, this price range is tax-free, but after April 2025, buyers will need to pay 2% SDLT on this portion of their purchase.
First-Time Buyer Relief is Being Reduced
First-time buyers currently benefit from no SDLT on the first £425,000 however from April 2025:
- The tax-free threshold for first-time buyers will drop to £300,000.
- Any portion between £300,001 and £500,000 will be taxed at 5%.
- Properties over £500,000 will no longer qualify for first-time buyer relief.
This means first-time buyers purchasing above £300,000 will have to pay SDLT for the first time in years, and those buying at the higher end will pay considerably more.
Where to Find More Information About SDLT Costs
With SDLT changes coming into effect, it’s crucial to stay updated on the latest stamp duty rates and how they will impact your property purchase. The UK Government provides official guidance and stamp duty calculators to help buyers understand their potential SDLT liability.
To find the most accurate and up-to-date information, visit the following pages:
📌 UK Government SDLT Guide: Comprehensive details on SDLT rates, exemptions, and reliefs.
📌 Stamp Duty Calculator: An easy-to-use tool to estimate how much SDLT you will need to pay based on your property’s price and circumstances.
These resources will help you get a clear picture of how much SDLT you may owe and allow you to plan accordingly.
How This Affects Homebuyers
These changes will have several effects on homebuyers:
Increased Upfront Costs
More buyers will need to budget for SDLT, increasing the total cash needed at completion. This could make affordability more challenging, especially for first-time buyers.
A Rush to Buy Before April 2025
Since the changes mean higher SDLT bills after April, many buyers may try to complete their purchases before the deadline. This could lead to a busy property market in late 2024 and early 2025, potentially increasing competition and house prices in the short term.
Regional Differences in Impact
In areas where property prices are lower, such as parts of the North and Midlands, SDLT may still be minimal. However, in London and the South East, where property prices are higher, many buyers will feel the impact of these tax increases more significantly.
Dudden Law is Here to Help
The April 2025 SDLT changes mark the end of temporary tax reliefs that have been in place since 2022. These adjustments mean higher tax bills for most buyers, particularly first-time buyers and those purchasing in higher price brackets.
If you’re planning to buy a home soon, you should act now to explore your options and potentially complete before the new rates take effect. At Dudden Law, our Conveyancing specialists can guide you through the SDLT changes and help you navigate the buying process smoothly.
📞 Contact us today to discuss your property purchase and ensure you’re making the most informed financial decisions before April 2025.
Written by
Aimmee Gregory
Head of Conveyancing
