Buying a House in Spring 2025? Here’s What You Need to Know About Stamp Duty Changes!

From April 1, 2025, the rules surrounding Stamp Duty Land Tax (SDLT) in England are changing, and this could significantly impact how much you pay when purchasing a property.

Stamp Duty Land Tax (SDLT) is a tax you pay when you purchase property or land over a certain price in England. The amount you pay depends on the property’s value, whether you’re a first-time buyer, and whether it’s an additional property.

Understanding SDLT is crucial because it can add thousands to your upfront costs when buying a house. Whether you’re purchasing your first home or adding to your property portfolio, knowing the updated SDLT rates will help you budget accurately and avoid unexpected financial strain.

Here are the new SDLT rates coming into effect on April 1, 2025:

• Up to £125,000: 0%

• £125,001 to £250,000: 2%

• £250,001 to £925,000: 5%

• £925,001 to £1.5 million: 10%

• Above £1.5 million: 12%

  
  

For example, if you’re buying a property worth £295,000, you will pay:

• 0% on the first £125,000, which equals £0

• 2% on the next £125,000, which equals £2,500

• 5% on the remaining £45,000, which equals £2,250

• This brings the total SDLT to £4,750

These changes mark a return to the pre-September 2022 rates, as the government aims to increase tax revenue and stabilize the housing market. The higher nil-rate band introduced in 2022 gave buyers some relief, but the return to previous thresholds means that more transactions will now be subject to SDLT.

We strongly recommend that if your matter involved Stamp Duty or Welsh Land Transaction Tax, to contact a Tax Advisor as we are not SDLT or LTT specialists.