Understanding the 2025 UK Stamp Duty Changes: What Buyers Need to Know
As of April 1, 2025, significant changes to the UK’s Stamp Duty Land Tax (SDLT) have come into effect, impacting homebuyers across England and Northern Ireland. These adjustments mark the end of temporary relief measures introduced in 2022, reverting thresholds and rates to their previous levels. Below is an overview of the new SDLT structure and its implications for various types of buyers
New Stamp Duty Rates for Main Residences
For individuals purchasing a primary residence, the SDLT rates are now as follows:
| Property Price Bracket | SDLT Rate |
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
Previously, the 0% rate applied up to £250,000, but it has now been reduced to £125,000.
First-Time Buyers: Reduced Relief
If you are a first-time buyer, you are going to be affected by the changes; 0% SDLT on properties up to £300,000 (down from £425,000).
- 5% SDLT on the portion between £300,001 and £500,000.
- No relief for properties over £500,000 (previously up to £625,000).
For example, if you are a first-time buyer purchasing a £400,000 home, you will now pay £5,000 in SDLT, whereas before the changes you would have had no tax to pay.
Second Homes and Buy-to-Let Properties: Higher Surcharges
If you are planning to buy an additional property; second home or a buy to let investment property, you will face increased surcharges
| Property Price Bracket | SDLT Rate |
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5 million | 15% |
| Over £1.5 million | 17% |
This is a rise from the previous 3% surcharge to 5%, a significant increase costs for investors.
Impact on Property Purchase Costs
The revised SDLT rates have made a considerable impact on the overall cost of purchasing a property, so you will need to factor in these changes when working on your budget you’re your new home or investment property.
The 2025 changes to the UK’s Stamp Duty Land Tax have introduced higher costs for many property buyers, especially first-time purchasers and investors. Understanding these new rates and planning accordingly is crucial for anyone looking to enter the property market.
Our team of conveyancing solicitors, with a combined experience of over 40 years, offer you sound legal advice when it comes to purchasing your property, whether this a home move, first time purchase or if you are investing in a buy to let property.
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