What Homebuyers Need to Know About SDLT Changes in 2025

What Homebuyers Need to Know About SDLT Changes in 2025

Major Changes to Stamp Duty Land Tax (SDLT) in 2025 – What It Means for You

If you’re planning to buy a property in 2025, you need to be aware of the upcoming **Stamp Duty Land Tax (SDLT) changes**. These new rules, effective from **April 2025**, will impact first-time buyers, homeowners moving to a new property, and investors purchasing additional homes.

Understanding how these changes affect your finances can help you plan ahead and avoid unexpected costs. Here’s everything you need to know.

What Is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a **property tax** levied on residential and commercial property purchases in England and Northern Ireland. The amount owed depends on:

• **The purchase price of the property**
• **Whether you’re a first-time buyer, homeowner, or investor**  
• **Whether the property is your main residence or an additional home**

With changes coming in April 2025, different buyers will be affected in different ways.

Current SDLT Rates (Before April 2025)

For Homeowners Moving to a New Property

• - Up to **£250,000** → **No SDLT**
• - **£250,001 – £925,000** → **5%**
• - **£925,001 – £1.5 million** → **10%**
• - Over **£1.5 million** → **12%**

For First-Time Buyers

• - Up to **£425,000** → **No SDLT**
• - **£425,001 – £925,000** → **5%**
• - **£925,001 – £1.5 million** → **10%**
• - Over **£1.5 million** → **12%**

For Buyers of a Second Home or Buy-to-Let Investors

• - Up to **£250,000** → **5%**
• - **£250,001 – £925,000** → **10%**
• - **£925,001 – £1.5 million** → **15%**
• - Over **£1.5 million** → **20%**

New SDLT Rates from April 2025

For Homeowners Moving to a New Property

• - Up to **£125,000** → **No SDLT**
• - **£125,001 – £250,000** → **2%**
• - **£250,001 – £925,000** → **5%**
• - **£925,001 – £1.5 million** → **10%**
• - Over **£1.5 million** → **12%**

For First-Time Buyers

• - Up to **£300,000** → **No SDLT**
• - **£300,001 – £500,000** → **5%**
• - Over **£500,000** → **Standard rates apply**

For Buyers of a Second Home or Buy-to-Let Investors

• - Up to **£125,000** → **5%**
• - **£125,001 – £250,000** → **7%**
• - **£250,001 – £925,000** → **10%**
• - **£925,001 – £1.5 million** → **15%**
• - Over **£1.5 million** → **17%**

How Will the SDLT Changes Impact Buyers?

First-Time Buyers

• The SDLT-free threshold drops from **£425,000 to £300,000**, meaning some first-time buyers will pay SDLT when they previously wouldn’t.
• If purchasing a property above **£500,000**, first-time buyers will pay standard rates with no relief.
• This could delay purchases as buyers need to **save more for upfront costs**.  

Homeowners Moving to a New Property

• More properties will **fall under the SDLT bracket** due to the reduced **tax-free threshold (from £250,000 to £125,000)**. 
• Buyers will need to factor in **higher costs** when budgeting for their move.

Second Homes & Buy-to-Let Investors

• Higher SDLT surcharges will **increase purchase costs**, making investment properties **more expensive**. 
• Some investors may choose to buy before **April 2025** to avoid the higher rates.

What Should You Do Now?

• **If you’re a first-time buyer**, consider purchasing **before April 2025** to benefit from the current SDLT-free threshold.
• **If you’re moving home**, be prepared for additional costs after April 2025 and factor SDLT into your budget.
• **If you’re an investor**, the increased SDLT surcharge may impact your returns – planning ahead is essential.

How Manak Solicitors Can Help

Navigating SDLT changes can be complicated, but our team at **Manak Solicitors** is here to guide you through the process. We provide expert conveyancing services to ensure you understand your tax liabilities and **make informed decisions about your property purchase**.

• **Why Choose Manak Solicitors?** 
• **Expertise in property law & conveyancing**
• **Clear, practical advice tailored to your needs**
• **Support for first-time buyers, home movers & investors**
• **Contact us today** to book a consultation and ensure you’re fully prepared for the SDLT changes in 2025.
• **Email us** | **Visit our offices** | **www.manaksolicitors.co.uk**