Stamp Duty 2025 Changes Explained
From April 1, 2025, Stamp Duty Land Tax (SDLT) rates are changing as the temporary thresholds introduced in September 2022 come to an end. This will affect anyone looking to buy a home, but first-time buyers will feel it the most.
What’s Changing for First-Time Buyers?
Right now, first-time buyers pay no stamp duty on homes up to £425,000. But from April 2025, that tax-free threshold drops to £300,000. If you’re buying a property for £300,000 or less, you’ll still pay nothing. If your property costs between £300,001 and £500,000, you’ll pay 5% on the amount above £300,000. This means someone buying at £425,000 will go from paying £0 to £6,250 in stamp duty.
Other Stamp Duty Changes
The 0% SDLT band for all buyers will shrink from £250,000 to £125,000.
Other tax bands will also be adjusted.
What Affects How Much SDLT You Pay?
Your stamp duty bill depends on things like:
✅ Whether you’re a UK resident
✅ Buying as an individual or a company
✅ If you’re a first-time buyer
✅ If you’re replacing your main home
✅ Buying a second property or investment property
These changes could significantly impact homebuyers, especially those stepping onto the property ladder for the first time. If you’re currently buying, it is important to complete before April 2025 to take advantage of the current rates.
For more information on this or anything Mortgage related, contact your Miles Rhodes Mortgage Adviser.
