Stamp Duty changes 2025

Stamp Duty changes 2025

On April 1, 2025, most Stamp Duty Land Tax (SDLT) thresholds will drop, meaning you could go from paying zero SDLT to paying several thousand pounds or more.

Stamp Duty Land Tax (SDLT) Changes Effective April 1, 2025

Stamp Duty payments differ based on factors such as residency status and buying purpose. So, for example, a first-time buyer will pay SDLT at a different rate to someone purchasing a second property.

Here’s a summary of the changes effective on April 1, 2025:

• Zero rate thresholds for main residences will drop from £250,000 to £125,000, with first-time homebuyer thresholds dropping from £425,000 to £300,000.
• First-Time Buyers Relief (lower stamp duty rate) will drop from £625,000 to £500,000.
• Those buying additional properties will pay 7% stamp duty for property values from £125,001 to £250,000, up from 5%.

 Here are the details of these changes:

For Main Residences

In England, stamp duty rates for main residences will be as follows (based on freehold properties):

For First-Time Buyers

Stamp duty changes on April 1, 2025, will have a drastic effect on first-time homebuyers, making homeownership more unaffordable. Stamp duty rates for first-time buyers in England will be as follows:

The First-Time Buyer’s Relief will change from £625,000 to £500,000 – so if you are a first-time buyer paying more than £500,000 for the property, then you are not entitled to the First-time Buyer rates and instead will pay the Standard Rate for Main Residences (as noted above).

If you’re buying a £400,000 property as a first-time buyer, you’re exempt from paying stamp duties until March 31, 2025. From April 1, 2025, you’ll pay £5,000 in stamp duties.

For Additional Home Purchases

If you buy an additional property in England (e.g. a second home or a buy to let), the following thresholds apply:

 To get a better idea of your payments, use a Stamp Duty Land Tax Calculator