What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is to be paid if you buy a property or land over a certain price. Your conveyancer will pay it on your behalf and this is calculated in the quote our team will provide before starting any work for you.
SDLT changes for first-time buyers
First-time buyers currently benefit from an SDLT exemption on properties up to £425,000, but from 1 April 2025 this will reduce to properties up to £300,000.
SDLT will be payable at 5% on the portion from £300,001 to £500,000. If the property is over £500,000 then no relief is allowed and the SDLT will be the same as those who have bought a property before (as explained later in this article)
For example, if you are a first-time buyer buying a residential property to the value of £395,000 the SDLT you owe is calculated as:
– 0% on the first £300,000 = £0
– 5% on the remaining £95,000 = £4,750
– Total SDLT = £4,750
Before 1 April 2025 there would have been no SDLT to pay on this property, so it is important to factor in the new rates.
SDLT changes for those buying a property to move into
If you are moving home, from 1 April 2025 there will be a reduction in the nil rate threshold this will change from £250,000 to £125,000, meaning more buyers will be required to pay SDLT.
For example, if you are buying a property under £125,000, you’ll pay no SDLT. However, if your property exceeds this threshold, you’ll pay tax on the portion above £125,000
The SDLT rates will apply as follows from 1 April 2025:
| Property value | Stamp Duty Land Tax % |
| 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% |
For example: If you purchase a house for £395,000 then your SDLT is calculated at £7250 if you complete your purchase before 1st April, and £9750 from that date.
Buying additional properties for second homes or investment
The higher SDLT rates for second homes and investment properties will remain, but again the thresholds from when they apply will change.
For example, a property worth £395,000 will see SDLT increase from £27,500 to £29,500 from April 2025.
If you’re planning on purchasing a property, it is important to factor in SDLT charges that apply to your situation.
Further information can be found on the government website, and you can calculate SDLT to be paid by using an online SDLT calculator.
If you wish to discuss anything mentioned in this article or are looking to purchase a home, then please get in touch with Tim Jordan or a member of our residential property conveyancing team.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is to be paid if you buy a property or land over a certain price. Your conveyancer will pay it on your behalf and this is calculated in the quote our team will provide before starting any work for you.
SDLT changes for first-time buyers
First-time buyers currently benefit from an SDLT exemption on properties up to £425,000, but from 1 April 2025 this will reduce to properties up to £300,000.
SDLT will be payable at 5% on the portion from £300,001 to £500,000. If the property is over £500,000 then no relief is allowed and the SDLT will be the same as those who have bought a property before (as explained later in this article)
For example, if you are a first-time buyer buying a residential property to the value of £395,000 the SDLT you owe is calculated as:
– 0% on the first £300,000 = £0
– 5% on the remaining £95,000 = £4,750
– Total SDLT = £4,750
Before 1 April 2025 there would have been no SDLT to pay on this property, so it is important to factor in the new rates.
SDLT changes for those buying a property to move into
If you are moving home, from 1 April 2025 there will be a reduction in the nil rate threshold this will change from £250,000 to £125,000, meaning more buyers will be required to pay SDLT.
For example, if you are buying a property under £125,000, you’ll pay no SDLT. However, if your property exceeds this threshold, you’ll pay tax on the portion above £125,000
The SDLT rates will apply as follows from 1 April 2025:
| Property value | Stamp Duty Land Tax % |
| 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% |
For example: If you purchase a house for £395,000 then your SDLT is calculated at £7250 if you complete your purchase before 1st April, and £9750 from that date.
Buying additional properties for second homes or investment
The higher SDLT rates for second homes and investment properties will remain, but again the thresholds from when they apply will change.
For example, a property worth £395,000 will see SDLT increase from £27,500 to £29,500 from April 2025.
If you’re planning on purchasing a property, it is important to factor in SDLT charges that apply to your situation.
Further information can be found on the government website, and you can calculate SDLT to be paid by using an online SDLT calculator.
If you wish to discuss anything mentioned in this article or are looking to purchase a home, then please get in touch with Tim Jordan or a member of our residential property conveyancing team.