2025 UK Stamp Duty Changes

April 2025 UK Stamp Duty Update: Key Changes For Buyers 🧐

How do the new stamp duty changes impact me? 🤯

Big changes to Stamp Duty Land Tax (SDLT) are coming in April 2025, and they could affect what you pay when buying a home. From revised thresholds to changes in exemptions for first-time buyers, these updates could mean different financial outcomes depending on when you buy.

Changes Explained 👇:

1. General Stamp Duty Threshold: The tax-free threshold will reduce from £250,000 to £125,000. This means that buyers will need to pay SDLT on any property amount above £125,000.
2. First-Time Buyer Relief: The tax-free limit for first-time buyers will decrease from £425,000 to £300,000. For purchases between £300,000 and £500,000, a 5% SDLT rate will apply on the amount above £300,000.
   Additionally, the maximum property price eligible for first-time buyer relief will reduce from £625,000 to £500,000.

Who Will Be Most Affected? 🤷‍♀️

• First-Time Buyers: Previously, first-time buyers could save up to £10,000 on properties up to £425,000 due to the higher threshold. Starting in April 2025, they will only benefit from SDLT relief on properties up to £300,000, resulting in an added tax cost on homes priced between £300,000 and £500,000.
• Second-Time Buyers and Investors: Buyers who have previously purchased a home and are not eligible for first-time buyer relief will now pay SDLT starting from £125,000, rather than the current £250,000 threshold. This change means that even relatively modest property purchases could incur a higher SDLT bill.

Examples of Savings and Costs Before and After the Change 💰:

FIRST-TIME BUYER PURCHASING A £400,000 HOME:

Before April 2025: Pays no SDLT on the first £425,000.
After April 2025: Pays SDLT on the amount above £300,000, resulting in a tax bill of £5,000.

SECOND-TIME BUYER PURCHASING A £500,000 HOME:

Before April 2025: No SDLT on the first £250,000.
After April 2025: Pays SDLT starting from £125,000, leading to a total bill of £12,500.

When Do These Changes Take Effect 📆:

These SDLT adjustments will come into action on April 1st, 2025. Purchases completed by March 31, 2025, can still benefit from the current SDLT reliefs listed above.

How can Nested help? 🤩

Putting it simply - changes to Stamp Duty happen regularly nowadays, but it's all part of the journey. We simply need to adjust and make sure you still get the most out of your move.

As your local, experienced estate agent, we’re here to help you navigate these changes and ensure you maximise your savings, making the buying process as smooth as possible.