SDLT Rule Changes: What Buyers Need to Know in 2025

Stamp Duty Land Tax (SDLT) is something every property buyer in England and Northern Ireland needs to consider. With changes coming into effect on 1 April 2025, it's important to understand how these updates might impact your next purchase. Whether you're a first-time buyer, an investor, or moving home, staying informed can help you make better financial decisions.

Key SDLT Changes in 2025

SDLT rules are being updated to reflect changes in the property market. Here are the key adjustments:

Lower SDLT Thresholds for Residential Buyers

The 0% SDLT threshold is being reduced from £250,000 to £125,000, meaning more buyers will need to pay SDLT on their purchases. The new standard SDLT rates will be:

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%

First-Time Buyer Relief Adjustments

First-time buyers will still receive SDLT relief, but the thresholds are changing:

Up to £300,000 – 0%
£300,001 to £500,000 – 5%

If a first-time buyer purchases a property worth more than £500,000, they will no longer qualify for relief and will pay the standard rates.

Higher SDLT Rates for Additional Properties

Buyers of second homes and buy-to-let properties will face increased SDLT rates:

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%

This is a significant increase, particularly at the lower end of the market, where additional property purchases were previously taxed at a 3% surcharge.

How These Changes Affect You

First-time buyers: If you're purchasing a property under £300,000, you may still benefit from SDLT relief. However, if you're buying a more expensive home, be prepared to pay more tax than before.
Buy-to-let investors: The increased SDLT surcharge means higher upfront costs when purchasing rental properties, making it essential to factor these into investment calculations.

What You Can Do to Prepare

Understand the new rates – Make sure you know how much SDLT you'll need to pay before committing to a property purchase.
Plan ahead – If you're close to completing a property transaction, consider how these changes might affect you.
Speak to a tax expert – A professional can help you navigate the new rules and explore any possible exemptions or reliefs.

Final Thoughts

The SDLT changes coming in April 2025 will mean higher costs for many buyers, especially investors and those purchasing second homes. If you're in the market for a property, now is the time to get informed and plan accordingly. Speaking to an expert like SCA Tax can help you make the most of any available tax reliefs and avoid unexpected costs. Contact us on 0161 669 6731 or email [email protected] for a free consultation.