SDLT Changes from 1st April 2025
These changes will impact how much SDLT you will need to pay on your property purchase(s), depending on your circumstances.
Current SDLT Rates
At the moment, no SDLT is payable on properties up to £250,000. Above this threshold, the tax brackets are shown below:
- £250,001 – £925,000: 5%
- £925,001 – £1.5 million: 10%
- Over £1.5 million: 12%
First-time buyers qualify for relief on properties up to £625,000, paying no SDLT on the first £425,000.
Key Changes from April 2025
New Standard Rates
The threshold will decrease to £125,000, with new tax brackets below:
- Up to £125,000: 0%
- £125,001 – £250,000: 2%
- £250,001 – £925,000: 5%
- £925,001 – £1.5 million: 10%
- Over £1.5 million: 12%
First-Time Buyers
The relief for first-time buyers will be adjusted to the following:
- 0% up to £300,000
- 5% on the property value between £300,001 and £500,000
Additional Properties
Buy-to-let and additional home purchases will incur increased surcharges:
- Up to £125,000: 5%
- £125,001 – £250,000: 7%
- £250,001 – £925,000: 10%
- £925,001 – £1.5 million: 15%
- Over £1.5 million: 17%
These changes are significant increases to SDLT thresholds so if you are planning to buy property after 1 April 2025, please ensure you have considered these new rates. SDLT is a self-assessment tax, and so you must ensure you are fully aware of the amount of tax payable at the point of completion.
We’re here to advise you
HSR Law will advise you of the current rate of tax at completion of your matter but cannot be held responsible for any change in this / increase from your initial instruction date. Whilst we will ensure that we deal with your matter as quickly and efficiently as possible to avoid any increase, we cannot guarantee timescales due to the nature of property transactions.