28/01/2025
Starting from 1 April 2025, the Stamp Duty Land Tax (SDLT) rates in England and Northern Ireland will change as follows:
For Residential Property Purchases:
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%
Example: If you purchase a property for £295,000 after 1 April 2025, the SDLT would be calculated as follows:
0% on the first £125,000: £0
2% on the next £125,000 (£125,001 to £250,000): £2,500
5% on the remaining £45,000 (£250,001 to £295,000): £2,250
Total SDLT: £4,750
For First-Time Buyers:
First-time buyers can claim relief, resulting in:
Up to £300,000: 0%
£300,001 to £500,000: 5% on the portion above £300,000
If the property price exceeds £500,000, standard rates apply without relief.
Example: A first-time buyer purchasing a property for £500,000 would pay:
0% on the first £300,000: £0
5% on the remaining £200,000: £10,000
Total SDLT: £10,000
These changes reflect a decrease in the nil-rate threshold from £250,000 to £125,000 for standard residential purchases and from £425,000 to £300,000 for first-time buyers. Consequently, many buyers will face higher SDLT liabilities from April 2025.
Given the average completion time for property purchases is around 126 days, it's advisable for prospective buyers to expedite their transactions to benefit from the current rates before the changes take effect.
