Stamp Duty Land Tax Increase effective 1 April 2025

With less than one month to go, the temporary relief on Stamp Duty Land Tax is due to end on 1 April 2025. This change is likely to impact most people wanting to move.

What is Stamp Duty Land Tax (‘SDLT’)?

SDLT is a government tax payable by the buyer on either:

1. The purchase of a property, or
2. The transfer of land which is subject to a mortgage or value being paid.

If you have instructed a Solicitor or Conveyancer, then they will arrange for the submission of the SDLT return and payment of any sum payable following formal completion.

The rates of SDLT will depend on certain circumstances, including:

• The type of property i.e. residential, non-residential or mixed use.
• Whether the buyer is a UK resident.
• Whether the buyer is eligible for a relief or exemption i.e. First Time Buyer.
• Whether the buyer already owns a property or properties anywhere in the world.

Why are SDLT rates changing?

In September 2022, the Government announced a temporary increase in the SDLT thresholds. This temporary increase allowed many buyers to save money as reduced rates of SDLT applied. However, the Government will be reverting to higher rates of SDLT from 1 April 2025 and this will impact upon many property transactions throughout the UK.

Thresholds of SDLT

If the transaction falls under the threshold for SDLT, then there is no SDLT to pay.

Thresholds up to 31 March 2025:

The current SDLT rates apply when you buy property or land valued at:

• £250,000 for residential properties
• £425,000 for First Time Buyers buying residential property worth £625,000 or less
• £150,000 for non-residential land and properties

Thresholds up to 1 April 2025:

The new SDLT rates apply as follows:

• £125,000 for residential properties
• £300,000 for First-Time Buyers buying a residential property worth £500,000 or less
• £150,000 for non-residential land and properties

Residential transactions are very affected by the SDLT changes, especially the First Time Buyer who is wishing to start on the property ladder now having to consider the cost of SDLT for any purchase over £300,000.

The following website gives further information on the thresholds of SDLT (Stamp Duty Land Tax: Overview - GOV.UK).

Current rates of SDLT – up to 31 March 2025

The Government website (Stamp Duty Land Tax: Residential property rates - GOV.UK) has set out the following helpful tables of the current and new rates of SDLT.

              
If the transaction completes after 31 March 2025, then the new rate of SDLT is payable.

New rates of SDLT effective 1 April 2025

Please note the rates above need to be considered with the buyer’s personal circumstances, as certain reliefs, exemptions or special rates may be due.

SDLT Calculator

If you are considering purchasing a property, it is best to calculate SDLT liabilities as part of the initial process so you are fully aware of how much this will cost at the very start of your search for your dream home. 

Here is the link to the Government Stamp Duty Land Tax Calculator to assist you.