17th April 2025
Stamp Duty Land Tax Changes 2025
From the 1st of April 2025, a number of changes came into effect that could impact you if you’re in the process of, or are planning to, purchase a property in England or Northern Ireland. Applying to all buyers, regardless of property type, financing route or purchasing history, as long as the sale exceeds the relevant threshold, Stamp Duty will be payable.
At SDL Property Auctions, we believe in demystifying the sometimes confusing rules that can surround purchasing a property so that all buyers can complete their sale as quickly and confidently as possible. So, whether you have your eye on a property in one of our upcoming auctions, or through any other method, familiarise yourself with the SDLT changes of 2025 with our help.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax that is charged on purchases of property or land made in England and Northern Ireland, with Scotland and Wales following separate tax requirements. The tax is applicable to most property types, from empty plots of land to residential and commercial properties, and cash buyers, shared-ownership and mortgage financing buyers are all expected to pay. Freehold and new or existing leasehold properties are also all considered, so all buyers need to pay attention to Stamp Duty.
While all buyers could be required to pay SDLT on their purchase, there are three main considerations to make when working out what thresholds and reductions could be applied to you. These are:
- The cost of the property
- The purpose of the property
- Your buyer position.
What are the changes to stamp duty in 2025?
Three main changes have come into effect from the 1st of April 2025, applying to all buyers, including investors and second-home buyers and first-time buyers. These are broken down below, with in-depth breakdowns of each change included later in this guide.
- The zero percent threshold (nil-rate) for Stamp Duty is being lowered from £250,000 to £125,000. This is a reversion back to the nil-rate from before the September 2022 Mini-Budget, which temporarily doubled this to make buying easier.
- For additional properties (over the value of £40,000), the 5% surcharge introduced in October 2024 will remain in effect, applying to the whole value of the property (including the nil-rate threshold).
- The threshold for first-time buyers is also being lowered to £300,000 (for properties costing £500,000 or less), from £425,000 (for properties costing £625,000 or less).
How much will Stamp Duty be from April 2025?
In England and Northern Ireland, the Stamp Duty will be set to the following property values and tax rates. These rates apply to buyers who have already purchased property in the past (and first-time buyers where the property value exceeds £500,000), and don’t currently own another property.
Before 1st April 2025
| Property Value | Tax Rate |
|---|---|
| – | – |
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| £1.5m+ | 12% |
From 1st April 2025
| Property Value | Tax Rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| £1.5m+ | 12% |
What is the stamp duty for investors in 2025?
Having already increased from 3% to 5% in October 2024, the surcharge for purchasing additional property will remain the same from April 2025.
Before 1st April 2025
| Property Value | Tax Rate (Including Surcharge) |
|---|---|
| – | – |
| £0 – £250,000 | 5% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5m | 15% |
| £1.5m+ | 17% |
From 1st April 2025
| Property Value | Tax Rate (Including Surcharge) |
|---|---|
| £0 – £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5m | 15% |
| £1.5m+ | 17% |
Do first-time buyers have to pay Stamp Duty in 2025?
Yes, depending on the price of the property, first-time buyers may need to pay Stamp Duty on their purchase. However, the SDLT changes still include a tax relief for first-time buyers, so you’ll still end up paying less than those who have purchased a house before (provided the price of the property does not exceed the new maximum relief amount).
Before 1st April 2025
| Property Value | Tax Rate |
|---|---|
| £0 – £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| £625,001+ | Not eligible for tax relief. |
After 1st April 2025
| Property Value | Tax Rate |
|---|---|
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| £500,001+ | Not eligible for tax relief. |
How much stamp duty will I pay after April 2025?
How much Stamp Duty you’ll need to pay will always depend on your buyer position, what you’ll use the property for (as your main residence, a second home, or commercial property), and the value of the property.
When buying a property at auction, paying attention to the Stamp Duty that is payable on the lot is extra important too, with the final value of the lot not confirmed until the hammer falls. That’s why, when you’re setting your top budget, you should always do the calculations before placing a bid.
If you’re considering buying a property, take a look through the lots available in our Upcoming Auctions. Alternatively, if you have questions about financing your purchase, our partners Together can provide you with expert guidance and loan support.