Significant changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland are scheduled for 1 April 2025, following the conclusion of temporary reductions. These adjustments will affect various types of buyers, including first-time purchasers and those acquiring additional properties.
Heres what you need to know:
From April 1, 2025, the stamp duty nil-rate threshold will reduce:
- For a main residence purchase, it drops from £250,000 to £125,000.
- For first-time buyers, it decreases from £425,000 to £300,000, and the property value eligible for relief reduces from £625,000 to £500,000.
This means buyers could face higher costs if they don’t complete before the deadline.
For example: For first-time buyers purchasing a £350,000 property:
- Current Stamp Duty: £0
- Post-April 2025 Stamp Duty: £2,500
- Additional Cost: £2,500
For a main residence purchase a £350,000 property:
- Current Stamp Duty: £5,000
- Post-April 2025 Stamp Duty: £7,500
- Additional Cost: £2,500
New SDLT Rates (Effective April 1, 2025
For Main Residence Purchases:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Over £1.5 million: 12%
For First-Time Buyers:
- Up to £300,000: 0%
- £300,001 to £500,000: 5%
- Over £500,000: Standard rates apply
Don’t let the stamp duty changes catch you off guard—
speak to our expert mortgage advisor today for tailored advice and to explore your options before the new rates take effect.