April 2025 Stamp Duty Land Tax (SDLT) Changes – What You Need to Know

As of 1st April 2025, major changes to Stamp Duty Land Tax (SDLT) have now come into effect, impacting property buyers across England. These changes, announced in the 2024 Autumn Budget, mean that many buyers—especially first-time buyers and those purchasing additional properties—will face higher SDLT costs.

What is Stamp Duty Land Tax (SDLT)?

SDLT is a tax payable to HMRC when purchasing land or property in England. In Wales, it is referred to as Land Transaction Tax (LTT). The amount you pay depends on several factors, including:

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• Whether you are a UK resident or a non-resident
• Whether the property is being purchased by an individual or a company
• Whether you are a first-time buyer
• Whether the property is a main residence or an additional property

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Solicitors usually handle SDLT payments on behalf of buyers to ensure compliance with deadlines.

New SDLT Rates from 1st April 2025

For UK residents purchasing a main residence, the stamp duty rates have now changed as follows:

Previous Rates (Before 1st April 2025)

• £0 – £250,000: 0%
• £250,001 – £925,000: 5%
• £925,001 – £1.5m: 10%
• Over £1.5m: 12%

New Rates (From 1st April 2025)

• £0 – £125,000: 0%
• £125,001 – £925,000: 5%
• £925,001 – £1.5m: 10%
• Over £1.5m: 12%

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With the nil-rate threshold now reduced from £250,000 to £125,000, more buyers will have to pay SDLT even on lower-value properties.

Key SDLT Changes That Now Apply

• The nil-rate threshold has dropped from £250,000 to £125,000.

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• First-time buyers now only get stamp duty relief on purchases up to £300,000, down from £425,000.

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• The maximum property price eligible for first-time buyer relief has reduced from £625,000 to £500,000.

First-Time Buyers Face Higher Costs

The reduction in first-time buyer relief means that those looking to step onto the property ladder will need to budget for increased upfront costs. With the relief threshold now capped at £300,000 instead of £425,000, more first-time buyers will have to pay SDLT on their purchases.

Buying a Second Home?

If you’re purchasing a buy-to-let property or second home, higher SDLT rates now apply to the entire purchase price. As of today, the updated rates are:

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• 5% on properties up to £125,000
• 7% on properties between £125,001 – £250,000
• 10% on properties between £250,001 – £925,000
• 15% on properties between £925,001 – £1.5m
• 17% on properties above £1.5m

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These increases mean that additional property buyers must account for significantly higher SDLT costs when budgeting for their purchases.

Higher Costs for Non-UK Residents

Non-UK residents purchasing property in England and Northern Ireland must also factor in an additional 2% surcharge on top of the standard SDLT rates. This could make investing in UK property more expensive for overseas buyers.

Need Advice? Speak to Marsons Solicitors

Understanding these new Stamp Duty Land Tax rules is crucial when buying property. Whether you are a first-time buyer, purchasing a second home, or investing in property, our team at Marsons Solicitors can guide you through the conveyancing process and help you navigate these changes.

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If you're in the process of buying a property, it’s vital to be aware of how these changes impact your costs. Contact Marsons Solicitors today for expert legal advice on SDLT and property transactions.

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