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Stamp Duty Land Tax (SDLT) is changing as of April 1st 2025, which could add thousands to the cost of moving home. Whether you’re moving into a new home or buying your first property, here’s everything you need to know about the rate change.
In September 2022, the previous Government introduced a temporary adjustment to Stamp Duty, aimed at supporting the housing market and helping people get onto the property ladder.
In the Autumn Statement later that year, the Government announced the increase in the nil-rate Stamp Duty threshold would end on 31 March 2025.
If you are a UK resident moving into a new main residence, from the 1st of April 2025 you can expect to pay the following Stamp Duty rates:
|
Proportion of Property Value |
Rate |
|
Up to £125,000 |
0% |
|
£125,000 to £250,000 |
2% |
|
£250,000 to £925,000 |
5% |
|
£925,000 to £1.5 million |
10% |
|
Over £1.5 million |
12% |
The most important thing to note is that the nil-rate will return to the previous level of £125,000.
To help you work out how much you’ll need to pay, you can try out Money Saving Expert’s Stamp Duty Calculator 2025.
Stamp Duty changes are likely to impact first time buyers the most. Until March 31st 2025, First Time Buyers Relief can be claimed up to a maximum price of £625,000.
However from April 2025 onwards, this returns to its previous level of £500k, meaning first time buyers will need to pay 5% on properties priced £300,000 to £500,000.
First Time Buyers Relief is a discount introduced in November 2017 to help anyone struggling to meet the upfront costs of buying their first home. This means any first time buyer purchasing a property up to a certain threshold will pay no SDLT at all.
Check out the changes as of April 1st:
|
Proportion of Property Value |
Rate |
|
Up to £300,000 |
0% |
|
£300,000 to £500,000 |
5% |
If you’re a first time buyer purchasing a property over £500,000, standard rates of Stamp Duty apply.
If you're making progress towards buying your first home but are concerned about meeting the deadline, here are a few things to keep in mind regarding any unexpected extra costs:
Check out our handy guide for more information on the fees involved when buying your first home.
Purchasing a second home or investment property always comes with some financial considerations, especially with the Stamp Duty changes coming in 2025.
For second homes, here’s what you can expect to pay in Stamp Duty from April 2025 onwards:
|
Proportion of Property Value |
Rate |
|
Up to £125,000 |
5% |
|
£125,000 to £250,000 |
7% |
|
£250,000 to £925,000 |
10% |
|
£925,000 to £1.5 million |
15% |
|
Over £1.5 million |
17% |
The main thing to note is the new 7% rate, which will apply to the portion of property value between £125,000 and £250,000.
Given these changes, anyone considering purchasing a second property should plan accordingly to accommodate the increased tax obligations.
No matter where you are on your home ownership journey, our team can help with any questions you might have. Please get in touch by visiting us in branch or giving us a call on 0800 834 312.
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