Stamp Duty Changes in 2025: What UK Buyers Need to Know

What changed in April 2025

From 1 April 2025, the temporary stamp duty land tax thresholds introduced by the Liz Truss mini-budget in September 2022 expired as scheduled. The standard residential nil-rate band reverted from £250,000 back to £125,000. The first-time buyer nil-rate band reverted from £425,000 back to £300,000. The first-time buyer relief ceiling reverted from £625,000 back to £500,000.

For a buyer purchasing a standard residential property at £400,000 (not a first-time buyer), SDLT in March 2025 was £7,500. From April 2025, the same purchase costs £10,000 in SDLT. The difference is £2,500 — a real and material increase for buyers who did not complete before the deadline.

How first-time buyers are affected

First-time buyers are disproportionately affected by the reversion because the nil-rate band they benefit from — now back to £300,000 from £425,000 — covers a narrower range of property prices. In most of England, a first-time buyer purchasing at the national average house price of roughly £285,000 still pays nothing in SDLT. But in London, where the average first-time buyer price has historically exceeded £420,000, the reversion adds significant tax.

A first-time buyer purchasing at £450,000 in England now pays SDLT of £7,500 (5 percent on £150,000 above the £300,000 nil-rate band). Before April 2025, the same purchase incurred SDLT of £1,250 (5 percent on £25,000 above £425,000). The additional cost is £6,250 — enough to affect affordability calculations and require a larger savings buffer.

Scotland and Wales: no changes

Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales are not affected by changes to SDLT. Both are set by devolved governments and operate under their own rules. The LBTT nil-rate band remains at £145,000 for standard purchasers and £175,000 for first-time buyers. The LTT nil-rate band for all residential buyers in Wales remains at £225,000.

Buyers in Scotland and Wales should check current LBTT and LTT rates using official Revenue Scotland and Welsh Revenue Authority calculators, as rates in both nations differ materially from SDLT — sometimes higher, sometimes lower depending on the purchase price and buyer type.

Planning your purchase after the reversion

If you are buying in 2026 or later, plan your budget using the current post-reversion rates. Any stamp duty estimates produced before April 2025 will understate your liability. Use the HomeBuyingCosts calculator to generate an accurate figure based on your purchase price, buyer type, and the nation (England/Northern Ireland, Scotland, or Wales) where the property is located.

One planning consideration that has not changed: if you own a second property at exchange, you pay a 3 percent higher-rate surcharge on the full purchase price in addition to the standard rates. This applies to buy-to-let purchases and to purchases where you own your current home and complete on a new property before selling the old one. If you then sell your previous main residence within three years, you can apply to HMRC for a refund of the surcharge.

Frequently asked questions