Changes to Stamp Duty Land Tax: Residential Property rates

What Is Stamp Duty Land Tax?

Stamp Duty Land Tax is a tax you pay when purchasing property or land in England and Northern Ireland. It is calculated based on the purchase price or consideration given for the property, with various thresholds and reliefs depending on your circumstances — such as being a first-time buyer or when purchasing an additional property.

UK Stamp Duty Changes from 1st April 2025: What do Homebuyers Need to Know?

As of 1st April 2025, the UK government has officially rolled back the temporary Stamp Duty Land Tax (SDLT) cuts introduced in 2022. These changes have a significant impact on both first-time buyers and existing homeowners. Here’s a clear breakdown of what’s changed and how it compares to the previous regime.

Key changes to Stamp Duty rates:

For first-time buyers

Previously (up to 31 March 2025):

• No SDLT on homes costing up to £425,000
• 5% SDLT on the portion from £425,001 to £625,000
• Properties above £625,000: No first-time buyer relief

New (From 1 April 2025):

• No SDLT on homes costing up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000
• Properties above £500,000: No first-time buyer relief

Example: A first-time buyer purchasing a home for £400,000 now pays £5,000 in SDLT (vs. £0 before April 2025).

For other home buyers & movers

Previously (up to 31 March 2025):

• No SDLT on the first £250,000
• 5% from £250,001 to £925,000
• 10% from £925,0001to £1.5 million
• 12% for properties above £1.5 million

New (from 1 April 2025):

• No SDLT on the first £125,000
• 2% from £125,001 to £250,000
• 5% from £250,001 to £925,000 (unchanged)
• 10% from £925,001 to £1.5 million (unchanged)
• 12% for properties above £1.5 million (unchanged)

Example: Buying a £400,000 home now incurs £10,000 in SDLT (vs. £7,500 before April 2025).

Changes for additional property purchases

For investors and individuals purchasing additional properties the additional 3% surcharge previously in place has now increased to 5% from the 31^st of October 2024, therefore the following changes are rate changes are now in affect:

Previously (up to 31 March 2025):

• 3% on the first £250,000
• 8% from £250,001 to £925,000
• 13% from £925,001 to £1.5 million
• 15% for properties above £1.5 million

New (from 1 April 2025):

• 5% on the first £125,000
• 7% from £125,001 to £250,000
• 10% from £250,001 to £925,000
• 15% from £925,001 to £1.5 million
• 17% for properties above £1.5 million

Example: Buying a £400,000 additional property now incurs £30,000 in SDLT (vs. £19,500 before November 2024).

To note, the surcharge will not come into effect if the consideration for the additional property is less than £40,000.  Also, a refund of the additional 5% can be claimed when replacing your existing residence within 36 months.

The higher SDLT rates above also apply for all residential purchases made by Limited Companies.

Non-UK residents stamp duty

From 1 April 2021, a 2% surcharge was added to stamp duty rates for buyers who are overseas/non-UK residents. This rate has remained unchanged and is therefore applied to the rates listed above.

Final Consideration

The return to the original SDLT thresholds from April 2025 means higher upfront costs for many buyers. Therefore, if you’re planning on buying a property in 2025, or already in the process of doing so, it’s important to check your liability as a result of these tax changes, feel free to contact your local Perrys branch for any further advice.