The 2025 Stamp Duty Land Tax (SDLT) changes are an important topic in UK property law.

Stamp Duty Land Tax (or SDLT) is a tax payable to HMRC when an individual or corporate entity buys property or land in England and Wales (in Wales, it’s called the Land Transaction Tax).

SDLT uses thresholds for the calculation, so you pay an increasing percentage rate of SDLT according to the property’s value. How much you pay also depends on factors including whether you’re a first-time buyer, whether you will own any other property anywhere else in the world at the date of completion, and whether you’re a non-UK resident.

In her most recent Budget statement, the Chancellor of the Exchequer announced changes to SDLT, which will come into force on 1st April 2025. If you’re buying or considering buying a property at the moment, these changes could have a significant effect on the amount of SDLT payable. 

First time buyer – SDLT up to 31st March 2025

If you’re a first-time buyer purchasing a property valued at less than £625,000, currently you would pay no SDLT up to £425,000 but 5% on the portion between £425,001 and £625,000. If the purchase price is over £625,000, then first-time buyer’s relief cannot be claimed

If you’re buying an additional property, other rates of SDLT will apply. 

First time buyer – SDLT from 1st April 2025

The Chancellor announced significant changes to Stamp Duty Land Tax in her latest Budget. In most cases, it will result in purchasers paying more in SDLT.

Under the new rules coming into effect on 1st April 2025, a first-time buyer will not pay SDLT on a purchase price up to £300,000, with 5% SDLT due upon the portion from £300,001 to £500,000. If the purchase price is over £500,000 then first-time buyer’s relief cannot be claimed.

Why you need a good conveyancer ?

Stamp Duty Land Tax can appear quite complex, particularly if you’re a first time buyer or you’re not making a standard property purchase. When you buy a property, you rely on your solicitor to calculate the SDLT on your transaction and transfer it to HMRC in time, so you can avoid a fine.

Having a good conveyancing solicitor in your corner has never been more important. 

For more information on how the Stamp Duty Changes might affect you, visit the Government website here