Buying a house before Stamp Duty Land Tax changes take effect
By Sarah Cookson, Richard Wisnia
Stamp Duty Land Tax (SDLT) is a tax that people in England have to pay when they buy property or land over a certain price. The amount you pay depends on the value of the property. The rates are set to change from April 2025.
The tax is tiered, meaning you pay different rates on different portions of the property's price.
The UK government increased the threshold at which homebuyers start paying SDLT in September 2022. This temporary measure was aimed at stimulating the housing market and helping buyers save money. This is currently expected to come to an end on 31 March 2025, at which point the rates are likely to revert to their lower, pre-September 2022 levels, meaning you could face higher stamp duty costs.
For the purposes of calculating Stamp Duty, the key date is the date of legal completion .
The date you exchange contracts, or the date you initially agreed a sale/purchase is not relevant. It is crucial to bear this in mind.
So any transaction which legally completes on or after 1 April 2025 will be subject to higher rates of SDLT than those completing on or before 31 March.
First-time buyers, home movers, and investors (or second property owners) will all be affected by the changes, which are as follows:
The “nil-rate band” is being reduced from £250,000 to £125,000
The table below sets out what your stamp duty on a home will be if you complete your purchase before April 2025.
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £250,000 or less | NIL |
| £250,001-£925,000 | 5% |
| £925,001-£1.5million | 10% |
| Above £1.5million | 12% |
The table below sets out what your stamp duty on a home will be if you complete your purchase on or after 1st April 2025.
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £125,000 or less | NIL |
| £125,001-£250,000 | 2% |
| £250,001-£925,000 | 5% |
| £925,000-£1.5million | 10% |
| Above £1.5million | 12% |
If you complete the purchase of a house for £275,000 on or before 31st March 2025, the SDLT would be:
0% on £250,000
5% on £25,000
= £1,250 to pay in stamp duty
For the same £275,000 purchase price, legal completion on or after 1st April 2025 would mean the following SDLT calculation:
0% on £125,000
2% on £125,000
5% on £25,000
= £3,750 to pay in stamp duty
Changes to First-Time Buyer Stamp Duty Relief
The table below sets out what your stamp duty on a home will be if you complete your purchase on or before 1st April 2025.
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £425,000 or less | NIL |
| £425,001-£625,000 | 5% |
| If the purchase price exceeds £625,001 the standard rates of stamp duty will apply to your purchase (see table one). |
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £300,000 or less | NIL |
| £300,001-£500,000 | 5% |
| If the purchase price exceeds £500,000 the standard rates of stamp duty will apply to your purchase (see table two). |
With the average UK house price currently at £292,000, many first-time buyers will now face higher costs when buying a home because of the changes to stamp duty.
Changes to stamp duty rates for additional properties
On 31 October 2024, the Chancellor increased the rates of SDLT payable by 2% per tier of purchase price. The reintroduction of the chargeable tier between £125,001 and £250,000 will increase the total liability for those buying second/additional properties, or for companies.
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £250,000 or less | 5% |
| £250,001-£925,000 | 10% |
| £925,001-£1.5million | 15% |
| Above £1.5million | 17% |
| Slice of total purchase price | SDLT Rate Payable |
|---|---|
| £125,000 or less | 5% |
| £125,001-£250,000 | 7% |
| £250,001-£925,000 | 10% |
| £925,000-£1.5million | 15% |
| Above £1.5million | 17% |
Act now to secure lower stamp duty rates
Don’t let the upcoming stamp duty changes cost you thousands. If you’re planning to buy your first home, move house, or invest in additional property, now is the time to act.
With the reduced nil-rate band and increased rates set to take effect from 1st April 2025, waiting could significantly increase your costs. For first-time buyers and investors, these changes mean added financial pressure—especially with the reintroduction of the £125,001-£250,000 tier and rising rates for additional properties.
Take control of your purchase timeline by speaking to our conveyancing team now on 0800 0129 085 to ensure a smooth process and avoid delays.
The clock is ticking, and demand is expected to rise as the deadline draws closer. Don’t wait—contact us today for expert advice and guidance on navigating these changes and securing your dream property before the new rates come into effect.
Find out how Switalskis can help you move home
Want to know more? Just give us a ring on 0800 012 9085 , or get in touch through our website.
Sarah has over 20 years’ experience as a Solicitor. She is also a Director and Head of our Residential Conveyancing team.
Richard qualified as a Solicitor in 2003. He is a Director at Switalskis and heads up our New Build Conveyancing team.
