Stamp Duty Land Tax (SDLT or Stamp Duty) rates are changing from 1st April 2025 when the temporary increases to the thresholds that were put in place in September 2022 are due to come to an end. Whether your client is looking to purchase a new home or an investment property, it’s important to be aware of how they will be impacted and to direct them to a tax adviser if they have any concerns.

Rates from 1st April 2025 for UK residents

•    The nil rate threshold which is currently £250,000 will return to the previous level of £125,000
•    The nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000
•    The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 but this will return to the previous level of £500,000
•    Buyers of additional properties currently pay a 5% surcharge on top of the standard SDLT rates and this will continue from April onwards

The government’s Stamp Duty Land Tax Calculator has been updated to include the new rates and will give a quick answer regarding the amount of stamp duty that your client will have to pay: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

Examples: 

First-time buyer:
•    Property price: £350,000
•    Stamp Duty now: £0
•    Stamp Duty from 1st April 2025: £2,500

 Moving up the property ladder (i.e. NOT first-time buyer):
•    Property price: £350,000
•    Stamp Duty now: £5,000
•    Stamp Duty from 1st April 2025: £7,500

Buy-to-let purchase through limited company: 
•    Property price: £350,000
•    Stamp Duty now: £22,500
•    Stamp Duty from 1st April 2025: £25,000

Further information on the Stamp Duty changes can be found by visiting Stamp Duty Land Tax: Overview - GOV.UK