SDLT UPDATE

SDLT Rates from 1 April 2025

As we approach April 1, 2025, significant changes to Stamp Duty Land Tax (SDLT) will impact homebuyers across England and Northern Ireland. Understanding these updates is crucial for anyone considering purchasing a residential property, whether you're a first-time buyer or looking to invest in additional properties. Below are the new SDLT rates effective from April 2025, along with details for first-time buyers and second home buyers.

New SDLT Rates for Residential Properties

Rates from 1 April 2025

For All Homebuyers:

• Up to £125,000: 0%

• The next £125,000 (the portion from £125,001 to £250,000): 2%

• The next £675,000 (the portion from £250,001 to £925,000): 5%

• The next £575,000 (the portion from £925,001 to £1.5 million): 10%

• The remaining amount (the portion above £1.5 million): 12%

Example Calculation for All Homebuyers

For a property priced at £295,000, the SDLT you owe will be calculated as follows:

• 0% on the first £125,000 = £0

• 2% on the next £125,000 = £2,500

• 5% on the final £45,000 = £2,250

• Total SDLT = £4,750

For First-Time Buyers

From April 2025, the SDLT rates for first-time buyers will change as follows:

• Up to £300,000: 0%

• The next £200,000 (the portion from £300,001 to £500,000): 5%

• If the purchase price exceeds £500,000, first-time buyer relief does not apply.

Example Calculation for First-Time Buyers

For a property priced at £350,000, the SDLT calculation will be:

• 0% on the first £300,000 = £0

• 5% on the remaining £50,000 = £2,500

• Total SDLT = £2,500

For Second Home Buyers

Second home buyers will face higher rates of SDLT starting April 2025:

• Up to £125,000: 5%

• The next £125,000 (the portion from £125,001 to £250,000): 7%

• The next £675,000 (the portion from £250,001 to £925,000): 10%

• The next £575,000 (the portion from £925,001 to £1.5 million): 15%

• The remaining amount (the portion above £1.5 million): 17%

Example Calculation for Second Home Buyers

For an investment property priced at £350,000, the SDLT calculation will be:

• 5% on the first £125,000 = £6,250

• 7% on the next £125,000 = £8,750

• 10% on the final £100,000 = £10,000

• Total SDLT = £25,000

Conclusion

The upcoming changes to stamp duty rates represent a significant shift in the property landscape. With more homebuyers expected to incur stamp duty costs—especially first-time buyers facing reduced thresholds and second home buyers facing increased rates—it is essential for potential buyers to factor these costs into their budgets.

For those considering purchasing property before these changes take effect or navigating the new landscape post-April 2025, consulting with a conveyancer can provide valuable insights and help ensure you are fully informed about your obligations and options.