2 April 2025
31st March 2025 marked the end of the holiday on Stamp Duty Land Tax (SDLT) in the UK.
Changes from 1st April 2025 for first time buyers
If you’re a first time buyer, the changes mean that you will have to pay stamp duty if the house you’re buying is more than £300,000.00.
Previously, you could buy a house worth £425,000.00 without having to pay anything for stamp duty.
Here are the thresholds for stamp duty for first time buyers, and how they’ve changed:
| SDLT | Until 31 March 2025 | From 1 April 2025 |
| 0% | Up to £425,000.00 | Up to £300,000.00 |
| 5% | £425,001.00 to £625,000.00 | £300,001.00 to £500,000.00 |
Thinking about this in practical terms, if the house you want to buy is £450,000.00, then you would have paid stamp duty land tax of £1,250.00 if your transaction completed before 31st March.
If you complete on 1st April or later, you’ll have to pay £7,500.00 to cover the tax. That’s a lot of additional cash on top of your deposit and other fees.
Until April 2025 you could buy a house worth £625,000.00 and still claim first time buyer relief (if it is your first property). After April, you will only be able to claim first time buyer relief if your house is £500,000.00 or less. If it’s more than that, you’ll pay the same rates as home movers.
Changes from 1st April 2025 for home movers
If you’re moving home SDLT reverts to the pre-September 2022 rates.
Here’s the comparison:
| SDLT | Until 31 March 2025 | From 1 April 2025 |
| 0% | Up to £250,000.00 | Up to £125,000.00 |
| 2% | – | £125,001.00 to £250,000.00 |
| 5% | £250,001.00 to £925,000.00 | £250,001.00 to £925,000.00 |
| 10% | £925,000.00 to £1,500,000.00 | £925,001.00 to £1,5000,000.00 |
| 12% | Above £1,500,000.00 | Above £1,500,000.00 |
In practical terms, if you’re moving to a home that you’re paying £450,000.00 for, the stamp duty will increase from £10,000.00 in March 2025, to £12,500.00 in April 2025.
Changes relating to second homes
From April 2025, there’s an extra band added into the stamp duty thresholds for additional property purchases.
The comparison table looks like this:
| SDLT | Until 31 March 2025 | From 1 April 2025 |
| 5% | Up to £250,000.00 | Up to £125,000.00 |
| 7% | – | £125,000.00 to £250,001.00 |
| 10% | £250,001.00 to £925,000.00 | £250,001.00 to £925,000.00 |
| 15% | Above £1,500,000.00 | £625,001.00 to £1,500,000.00 |
| 17% | Over £1,500,000.00 | Over £1,500,000.00 |
How the changes will affect you
As you can see from the calculations, the changes are likely to affect first time buyers more significantly than home movers.
It may mean that first time buyers will have to wait longer to save enough money to get onto the property ladder, particularly if they are looking at houses worth more than £425,000.00.
We could see a surge in demand for houses around the £400,000.00 mark, as first time buyers seek to secure these houses, and save significant sums, before the changes come in.
We’re happy to advise you on your conveyancing, and make sure the stamp duty calculations are correct for you. Please do get in touch if you’d like any help with the legal aspects of your move.
