Stamp Duty Land Tax Changes Effective April 1, 2025

Stamp Duty payments differ based on factors such as residency status and buying purpose. So, for example, a first-time buyer will pay SDLT at a different rate to someone purchasing a second property.

Here’s a summary of the changes effective on April 1, 2025:

• Zero rate thresholds for main residences will drop from £250,000 to £125,000, with first-time homebuyer thresholds dropping from £425,000 to £300,000.
• First-Time Buyers Relief (lower stamp duty rate) will drop from £625,000 to £500,000.
• Those buying additional properties will pay 7% stamp duty for property values from £125,001 to £250,000, up from 5%.

Here are the details of these changes:

For Main Residences

In England, stamp duty rates for main residences will be as follows (based on freehold properties):

Property Selling Price Current SDLT Rate SDLT Rate on April 1, 2025Up to £125,0000 to £250,0000 to £925,0005 to £1.5 million

For First-Time Buyers

Stamp duty changes on April 1, 2025, will have a drastic effect on first-time homebuyers, making homeownership more unaffordable. Stamp duty rates for first-time buyers in England will be as follows:

Property Selling Price Current SDLT Rate SDLT Rate on April 1, 2025Up to £300,0000,  £300,001 to £425,0000, £425,001 to £500,000, £500,001 to £625,0005

The First-Time Buyer’s Relief will change from £625,000 to £500,000 – so if you are a first-time buyer paying more than £500,000 for the property, then you are not entitled to the First-time Buyer rates and instead will pay the Standard Rate for Main Residences (as noted above).

If you’re buying a £400,000 property as a first-time buyer, you’re exempt from paying stamp duties until March 31, 2025. From April 1, 2025, you’ll pay £5,000 in stamp duties.

For Additional Home Purchases

If you buy an additional property in England (e.g. a second home or a buy to let), the following thresholds apply:

Property Selling Price Current SDLT Rate SDLT Rate on April 1, 2025Up to £125,0005, £125,001 to £250,0005, £250,001 to £925,00010 to £1.5 million, More than £1.5 million