Stamp Duty Land Tax Changes in 2025: What You Need to Know
As of 1 April 2025, significant changes to Stamp Duty Land Tax (SDLT) rates and thresholds have come into effect in England. These adjustments impact first-time buyers, home movers, and those purchasing additional properties. Understanding these changes is crucial for anyone involved in the property market.
Standard Residential Property Rates
For residential property purchases, SDLT is calculated on portions of the property price as follows:
| Property Price Bracket | SDLT Rate |
| 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% |
Example: If you purchase a property for £295,000:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 (£125,001–£250,000) = £2,500
- 5% on the remaining £45,000 (£250,001–£295,000) = £2,250
Total SDLT payable: £4,750
First-Time Buyer Relief
First-time buyers are eligible for SDLT relief on properties up to £500,000:
- 0% on the first £300,000
- 5% on the portion from £300,001 to £500,000
Note: If the purchase price exceeds £500,000, the standard SDLT rates apply to the entire amount.
Example: For a first-time buyer purchasing a property at £500,000:
- 0% on the first £300,000 = £0
- 5% on the remaining £200,000 = £10,000
Total SDLT payable: £10,000
Higher Rates for Additional Properties
If purchasing an additional residential property (e.g., second home or buy-to-let), a 5% surcharge applies on top of the standard SDLT rates:
| Property Price Bracket | SDLT Rate (Including 5% Surcharge) |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
Example: Purchasing an additional property at £300,000:
- 5% on the first £125,000 = £6,250
- 7% on the next £125,000 (£125,001–£250,000) = £8,750
- 10% on the remaining £50,000 (£250,001–£300,000) = £5,000
Total SDLT payable: £20,000
Implications for Buyers and Investors
The reduction in the nil-rate threshold from £250,000 to £125,000 means more buyers will incur SDLT, even on lower-priced properties. First-time buyers purchasing homes between £300,001 and £500,000 will face higher tax liabilities due to the adjusted relief thresholds.
Investors and those buying additional properties should be aware of the increased surcharge rates, which could impact the profitability of buy-to-let investments.
How CW Booth & Co Can Assist
Navigating the complexities of SDLT can be challenging. At CW Booth & Co, our experienced conveyancing solicitors can provide clear guidance on your SDLT obligations, ensure all reliefs are applied correctly, and handle the submission of your SDLT return.
If you’re considering buying a property or need advice on how these changes affect you, contact us today for a free consultation.