As you may be aware, the beginning of April 2025 has brought changes to Stamp Duty Land Tax in England, Wales and Northern Ireland. If you’re considering buying a property, it’s crucial to understand how these changes could affect your purchase.
What is Stamp Duty Land Tax (SDLT)?
SDLT is a tax that homebuyers in England and Northern Ireland pay when purchasing property. It’s calculated based on the price of the property, with different rates applying to different price bands. The new changes to SDLT could have a big impact on how much you pay when you buy a home.
Key Changes in April 2025:
- New Tiered Rates: The government has adjusted the existing rates and bands for Stamp Duty. Some thresholds have shifted. While first-time buyers still benefit from lower rates, there is now a broader restructure to the tax.
- Benefits for First-Time Buyers: A higher threshold is in place before starting to pay Stamp Duty. Additionally, the new system removes some of the surcharges that previously applied to more expensive properties. This makes it easier for newcomers to get onto the property ladder.
- Higher Rates for Properties Over £1.5 Million: Homes valued above £1.5 million will see an increase in the SDLT rate. Buyers of high-end properties may face a higher tax bill. However, there are still safeguards in place to ensure that expensive homes remain accessible without an overwhelming tax burden.
- Incentives for Sustainable Homes: To promote eco-friendly home purchases, there will be discounts or rebates for properties that meet specific environmental standards. If you’re buying a green home or making energy-efficient upgrades to an existing property, you could benefit from a reduced tax bill.
The new rates:
And if you or anyone you're buying with is a first time buyer, you can claim a discount:
- no SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
If the price is over £500,000, you aren't eligible to the discounted SDLT rates.
How This Could Impact Home Buyers:
- Lower or No SDLT for Some: For many buyers, particularly first-time buyers or those purchasing lower-priced properties, the changes may mean a reduction in the amount of SDLT they owe. This could make it easier for buyers to afford other aspects of home buying, like deposit requirements and moving costs.
- Higher Costs for Expensive Homes: If you're buying a property priced above £1.5 million, you may face a higher Stamp Duty bill. The increased rates could make luxury homes less affordable for some buyers. But this is balanced by the incentives for first-time and lower-priced home buyers.
- Sustainability Incentives: If you're buying a home with green features, you could see tax reductions. This is a win for those looking to reduce their environmental impact while also saving money.
How Burtons can help
Make sure to stay informed and if in doubt, use the Stamp Duty Land Tax Calculator here. Ready to discuss the legal side of moving home? Our specialist team are more than happy to lend a hand. Request a quote for our conveyancing fees here.
