Upcoming SDLT Changes: What Property Buyers and Sellers Need to Know

March 18, 2025

Starting from 1 April 2025, the UK government will reverse the temporary Stamp Duty Land Tax (SDLT) threshold increases introduced in September 2022. This shift will have significant consequences for property buyers in England and Northern Ireland, including both first-time buyers and those purchasing additional properties. Here’s what you need to know about the changes.
Under the current system, which applies until 31 March 2025, buyers of residential properties benefit from higher SDLT thresholds:

• No SDLT is charged on residential properties valued up to £250,000.
• First-time buyers are exempt from SDLT on properties worth up to £425,000. Properties valued between £425,001 and £625,000 incur a 5% SDLT rate on the portion above £425,000.
  
  From 1 April 2025, the SDLT thresholds will be reduced:
  
• No SDLT will apply to residential properties worth up to £125,000.
• First-time buyers will pay no SDLT on properties valued up to £300,000. However, properties between £300,001 and £500,000 will be subject to a 5% SDLT rate on the portion above £300,000.
  
  The reduced threshold for first-time buyers means that any property purchase above £300,000 will be subject to SDLT at standard rates: 0% on the first £300,000 and 5% on the remaining amount. This change will affect many first-time buyers, increasing their tax burden on higher-value properties.
  
  For buyers of second homes or buy-to-let properties, the 3% SDLT surcharge will increase to 5% starting 1 April 2025. This will impact those looking to invest in additional properties, raising the overall SDLT liability.
  
  To take advantage of the current SDLT thresholds, property transactions must be completed by 31 March 2025. This includes both exchanging contracts and completing the purchase. Any delays beyond this date will mean that buyers will be subject to the revised tax rates, even if contracts were exchanged before 1 April 2025.
  
  With these forthcoming changes to SDLT, it’s crucial for anyone involved in buying or selling residential property to stay informed and take actions accordingly. Consulting with a legal professional is advisable to navigate the complexities of these shifts in tax law.
  
  If you have any questions about new SDLT rates, please do not hesitate to contact us on 01217057571 and ask to speak to our Property Department.

Kateryna Knyazyeva
Paralegal – Residential Conveyancing Department

This article is for general information purposes only. It does not constitute technical, financial, legal advice or any other type of professional advice and is no substitute for specific advice based on your individual circumstances. We do not accept responsibility or liability for any actions taken based on the information in this article. For more information, please click here.