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February 26, 2025SDLT Changes from April 2025: What Property Buyers Need to Know
If you’re planning to buy property in England or Northern Ireland, you need to be aware of the upcoming Stamp Duty Land Tax (SDLT) changes taking effect from April 2025. These changes will increase costs for homebuyers, especially buy-to-let investors and second home purchasers.
In this blog, we’ll break down the key changes, who will be affected, and what buyers should consider before the new rules take effect.
What’s Changing in April 2025?
The temporary SDLT cuts introduced in September 2022 will end, and additional changes will come into effect, including:
✅ The nil-rate threshold for standard home purchases will drop from £250,000 back to £125,000, meaning more buyers will have to pay SDLT.
✅ First-time buyers’ relief will reduce, lowering the threshold from £425,000 back to £300,000.
✅ The additional SDLT surcharge for second homes and buy-to-let properties will rise from 3% to 5%, increasing the upfront cost for landlords and investors.
✅ Non-UK resident buyers will still pay the 2% surcharge on top of standard SDLT rates.
These changes mean that many buyers will pay more in SDLT from April 2025 compared to the current system.
Who Will Be Affected?
1️⃣ First-Time Buyers
Currently, first-time buyers pay no SDLT on purchases up to £425,000, but from April 2025, this will drop to £300,000. Purchases between £300,000 and £500,000 will be taxed at 5%.
2️⃣ Home Movers
For anyone buying a new main home, the SDLT-free threshold will fall from £250,000 to £125,000, meaning tax will be due on more of the purchase price.
3️⃣ Buy-to-Let Investors & Second Home Buyers
The biggest change for property investors is the increase in the additional property SDLT surcharge from 3% to 5%. This means:
- A buyer purchasing a £300,000 buy-to-let property will now pay £20,000 in SDLT instead of £14,000 (an extra £6,000).
- For a £500,000 investment property, SDLT will rise from £26,250 to £35,000.
This higher upfront tax may make investing in property less attractive, potentially slowing the market for landlords and second-home buyers.
How Much More Could You Pay?
Here’s a comparison of SDLT rates before and after April 2025:
| Property Price | SDLT Before April 2025 (Main Home) | SDLT After April 2025 (Main Home) | SDLT Before April 2025 (Second Home – 3% Surcharge) | SDLT After April 2025 (Second Home – 5% Surcharge) |
|---|---|---|---|---|
| £250,000 | £0 | £2,500 | £7,500 | £12,500 |
| £300,000 | £2,500 | £5,000 | £14,000 | £20,000 |
| £500,000 | £12,500 | £15,000 | £26,250 | £35,000 |
For second home buyers and landlords, the increased 5% surcharge will result in significantly higher upfront costs.
What Should You Do Before April 2025?
If you’re considering buying a home, second property, or buy-to-let investment, you may want to act before April 2025 to take advantage of the lower SDLT rates.
🔹 For first-time buyers: If your property price is between £300,000 and £425,000, you could save up to £6,250 by buying before the changes take effect.
🔹 For home movers: If your purchase is over £125,000, buying before April 2025 could mean paying less SDLT.
🔹 For property investors: With the additional property surcharge increasing to 5%, completing a purchase before April 2025 could save thousands in tax.
Final Thoughts
The SDLT changes in April 2025 will increase costs for many buyers, particularly investors and second-home purchasers. If you’re thinking about buying a property, it may be worth completing your purchase before the new rates take effect.
Need help navigating these changes? Speak to a tax advisor or property expert to ensure you’re making the best financial decision.
💬 Have questions? Drop them in the comments!
