If you’re planning to buy a property, it is important to be aware that changes to Stamp Duty Land Tax (SDLT) are coming into force on 1 April 2025. These changes may affect how much SDLT you’ll need to pay when purchasing your property.
There are changes across the board – for first-time buyers, current owners and those buying additional properties.
| What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax you pay when you buy property or land in England. The amount you pay depends on the price of the property and, in some cases, whether you’re a first-time buyer, a non-resident buyer or purchasing an additional property.
| What is changing on 1 April 2025?
Back in 2022, the Government announced changes to SDLT, which lowered the upfront cost of buying a home. This was to support the housing market which was struggling post the Covid pandemic. They increased the “nil-rate band” from £125,000 to £250,000 so that no basic SDLT would be payable on properties purchased for up to £250,000. This concession was designed to be temporary.
From 1 April 2025, the nil rate bands will revert back to their previous levels, and some rates are changing.
The rates of SDLT for main residences (not first-time buyers or non-resident buyers):
| How will the SDLT changes on 1 April affect first-time buyers?
The 1 April 2025 changes for first-time buyers are quite pronounced. Their nil-rate band will reduce to £300,000 and they will only receive First-Time Buyers’ Relief on properties up to £500,000 (rather than the previous £625,000).
While this could have quite a big impact on some first time buyers, the latest figures show that the average price paid by first-time buyers in Leeds is £213,000, and £260,000 for England. Therefore, the changes won’t impact the majority of first-time buyers at all.
The rates of SDLT for first-time buyers are:
| SDLT changes for purchases of second homes
From 1 April 2025, the SDLT rates for additional property purchases will change to reflect the general SDLT changes.
| What does this mean for you?
If you’re planning on buying a property, you may need to budget for the new rates. They will apply to all properties where completion occurs on or after 1 April 2025.
For more information on what your SDLT liability is likely to be, we recommend that you use the government’s SDLT calculator.
