As of today (1st April 2025), the Stamp Duty Land Tax (SDLT) thresholds have changed, meaning that most homebuyers will now be paying more tax on their purchase.
In this article, Associate Conveyancer Charlotte Pottinger outline the new rates and what they mean for both homebuyers and first-time buyers.
What is Stamp Duty?
Stamp Duty Land Tax or SDLT is a mandatory tax that you pay when purchasing a property, much like the VAT that is paid on everyday items.
However, unlike VAT, Stamp Duty is variable meaning that it changes. Depending on the circumstances, the amount of SDLT you pay when you buy a property can be increased, reduced or not need to be paid at all.
SDLT only applies to properties in England and Northern Ireland. Scotland and Wales have separate systems for paying tax on properties.
Related: What is stamp duty in commercial property?
What is the new Stamp Duty from April 2025?
From 1st April 2025, the Stamp Duty thresholds have changed, meaning more people will need to pay the Tax. The new rates are as follows:
Value of property | SDLT payable |
Up to £125,000 | 0% |
From £125,001 to £250,000 | 2% |
From £250,001 to £925,000 | 5% |
From £925,001 to £1.5 million | 10% |
Above £1.5 million | 12% |
Do first time buyers pay stamp duty after April 2025?
Before 1 April 2025, first-time buyers in England and Northern Ireland did not pay any stamp duty on properties valued up to £425,000. However, from 1 April 2025 onwards homes priced between £300,001 and £500,000 will be subject to a 5% stamp duty rate.
For example:
- Purchase price: £350,000
- Stamp Duty before 1 April 2025 (first-time buyers): £0
- From April 1, 2025: £2,500
After April 1 2025, the 5% rate will apply to the £50,000 above the £300,001 threshold.
At Frettens, we’ve put together a free guide to buying your first home. From choosing a home, to the conveyancing process and moving day, you can read our free first-time buyers guide here.
Who can avoid stamp duty?
Aside from First-Time Buyers, purchasing properties up to the value of £300,000, there are other groups who may be exempt from paying Stamp Duty on their property, including those:
- Buying a freehold property for less than £40,000
- Whose property is left to someone in a Will
- Whose property is transferred because of a divorce or civil partnership dissolution
- Charities buying for charitable purposes
Read a full list of Stamp Duty exemptions on the Government website here.
How much Stamp Duty do I pay for a second home?
Those purchasing a second home pay an additional 5% on top of their Stamp Duty.
Second home owners will also be subject to the change in threshold as of 1st April 2025.
Read our full article on the tax implications of owning a second home here.
Is there additional Stamp Duty for non-UK residents?
Non-UK residents who purchase a property in England or Northern Ireland are also subject to an additional 2% surcharge on top of the normal SDLT rate. Find out more about this here.
Will Stamp Duty go up again in 2025?
As of 1st April 2025, the Stamp Duty rates have now reverted back to how they used to be (before the temporary change in threshold in September 2022).
It’s not been made clear whether Stamp Duty rates will change again in 2025. However, if an increase or decrease is made to the current rates, we’ll keep you informed!
To stay in the loop with all Conveyancing and Stamp Duty updates, you can sign up to our free email list here.
Specialist Conveyancing and First-Time Buyer Solicitors
Our bright and experienced Conveyancing Team is one of the largest in the area, and they would be happy to assist you in the purchase of your home.
If you have any questions following this article, whether on Stamp Duty or something else, please feel free to get in touch.
To contact us, you can call on 01202 499255 or fill out the form at the top of this page. We offer a free initial chat for all new clients.
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