Stamp Duty Changes 2025: What the April Update Means for You

Stamp duty rates in the UK are changing from April 2025, affecting both first-time buyers and existing homeowners. In this guide, we explain the key stamp duty changes in 2025, break down the new thresholds vs. old rates, and show how these updates could impact your property budget. Whether you’re buying a freehold, leasehold, or investment property, this article will help you navigate the new rules with confidence.

About Stamp Duty Land Taxes

Stamp Duty Land Tax is a lump sum payment made by property or land buyers to the government after completion. This should be paid within 14 days of the completion date. The amount depends on the corresponding SDLT rates for the price you pay for the property or land.

In England, homebuyers must pay the tax if they buy a property that’s a freehold, leasehold, under a shared ownership scheme, or transferred real estate (land or property exchanged with payment). The tax rates vary by area, with Wales following different rates under the Land Transaction Tax..

Stamp duty taxes do not apply to all real estate purchases. If the transaction is below the threshold, there’s no need to pay stamp duty taxes. In September 2022, the Conservative Government temporarily lowered these thresholds to make homebuying more affordable, especially for first-time buyers. By March 31, 2025, these temporary changes will end.

When do the new stamp duty rates take effect?

New stamp duty rates take effect from 1st April 2025.

What Are the Stamp Duty Changes in 2025?

Stamp Duty payments differ based on factors such as residency status and buying purpose. So, for example, a first-time buyer will pay SDLT at a different rate to someone purchasing a second property. From April 1, 2025, lower thresholds mean some buyers may now need to pay Stamp Duty when they previously wouldn’t have.

New stamp duty thresholds from April 2025

• Zero rate thresholds for main residences will drop from £250,000 to £125,000, with first-time homebuyer thresholds dropping from £425,000 to £300,000.
• First-Time Buyers Relief (lower stamp duty rate) will drop from £625,000 to £500,000.
• Those buying additional properties will pay 7% stamp duty for property values from £125,001 to £250,000, up from 5%.

Stamp Duty Rates 2025 vs. 2024 – A Side-by-Side Comparison

Main Residences

In England, stamp duty rates for main residences will be as follows (based on freehold properties):

Property Selling Price	SDLT Rates until March 2025	SDLT Rate on April 1, 2025
Up to £125,000	0%	0%
£125,001 to £250,000	0%	2%
£250,001 to £925,000	5%	5%
£925,001 to £1.5 million	10%	10%
More than £1.5 million	12%	12%

First-Time Buyers

Stamp duty changes on April 1, 2025, will have a drastic effect on first-time homebuyers, making homeownership more unaffordable. Stamp duty rates for first-time buyers in England will be as follows:

Property Selling Price	SDLT Rates until March 2025	SDLT Rate on April 1, 2025
Up to £300,000	0%	0%
£300,001 to £425,000	0%	5%
£425,001 to £500,000	5%	5%
£500,001 to £625,000	5%	5%

The First-Time Buyer’s Relief will change from £625,000 to £500,000 – so if you are a first-time buyer paying more than £500,000 for the property, then you are not entitled to the First-time Buyer rates and instead will pay the Standard Rate for Main Residences (as noted above).

If you’re buying a £400,000 property as a first-time buyer, you’re exempt from paying stamp duties until March 31, 2025. From April 1, 2025, you’ll pay £5,000 in stamp duties.

Buy to Let and Second Home Buyers

If you buy an additional property in England (e.g. a second home or a buy to let), the following thresholds apply:

Property Selling Price	SDLT Rates until March 2025	SDLT Rate on April 1, 2025
Up to £125,000	5%	5%
£125,001 to £250,000	5%	7%
£250,001 to £925,000	10%	10%
£925,001 to £1.5 million	15%	15%
More than £1.5 million	17%	17%

To get a better idea of your payments, use a Stamp Duty Land Tax Calculator.

Make the Homebuying Process Affordable and Stress-free

With the recent stamp duty changes now in effect, navigating the homebuying process efficiently is more important than ever. A licensed conveyancer can help streamline your transaction, ensuring everything is legally compliant and avoiding unnecessary delays.

With new stamp duty rates now in place, choose Muve Forward for great value and faster exchange than high street conveyancers, or opt for Muve Lightspeed to target exchange in as little as 5 weeks.