If you’re planning to buy a property, whether as a homebuyer, first-time buyer, or investor, the clock is ticking on Stamp Duty Land Tax (SDLT) savings.
From 1 April 2025, the SDLT thresholds are changing, which means higher tax bills for many buyers. Completing your purchase before the deadline could save you up to £2,500—or even more for first-time buyers!
Here’s what you need to know.
What’s Changing for SDLT?
Currently, buyers pay no SDLT on the first £250,000 of a property’s price. However, from 1 April 2025, this threshold drops to £125,000, meaning you’ll pay 2% on the next £125,000 of your purchase.
SDLT Rates Until 31 March 2025
| Property Price Bracket | SDLT Rate |
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
SDLT Rates From 1 April 2025
| Property Price Bracket | SDLT Rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Example: How Delaying a Purchase Could Cost You More
Anna is buying a home for £500,000.
- If she completes before 31 March 2025, she will pay £12,500 in SDLT.
- If she completes after 1 April 2025, her SDLT bill rises to £15,000—a £2,500 increase.
First-Time Buyers: Act Now to Avoid Paying Thousands More
First-time buyers stand to lose even more if they miss the deadline.
Currently, first-time buyers pay no SDLT on the first £425,000, but from April 2025, this will drop to £300,000. The tax relief also won’t apply to properties over £500,000 (currently £625,000).
Example: The Cost of Missing the Deadline for First-Time Buyers
Ben is a first-time buyer purchasing a £400,000 flat.
- If he completes before 1 April 2025, he will pay no SDLT.
- If he completes after 1 April 2025, he will owe £5,000 in SDLT (£100,000 at 5%).
Caitlyn is purchasing her first home for £600,000.
- If she completes before 1 April 2025, she pays £8,750 in SDLT.
- If she completes after 1 April 2025, she pays £20,000—a £11,250 increase!
Investment Buyers: How Will the Changes Affect You?
For those purchasing a second home or buy-to-let property, the higher SDLT surcharge (5%) still applies. However, the lower SDLT threshold means you’ll pay more upfront:
- Before 1 April 2025 – 5% SDLT on the first £250,000.
- From 1 April 2025 – 5% SDLT on the first £125,000, then 7% on the next £125,000.
How to Beat the SDLT Deadline
If you’re planning to buy a property, delaying could cost you thousands.
To avoid higher SDLT bills, make sure you:
✅ Get your finances in order – Ensure mortgage approvals and legal paperwork are sorted.
✅ Push for an early completion date – Work with your solicitor to speed up the process.
✅ Be ready to act fast – If your purchase is in progress, aim to complete before 31 March 2025.
Need Help Planning for SDLT Changes?
Whether you’re a homebuyer, first-time buyer, or investor, getting your tax right is crucial. Jon and the team can help you plan ahead and maximise savings before the SDLT deadline hits.
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Any questions?
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