Stamp Duty changes April 2025: New tax rates & what it means for you

Stamp Duty changes April 2025: New tax rates & what it means for you

It’s no April Fool’s joke – from 1st April 2025, the Stamp Duty Land Tax (SDLT) thresholds are changing. At Hawthorn & Co, we’re here to ensure you understand how these changes could impact your property purchase.

Why Are the Stamp Duty Rates Changing?

Stamp Duty is a significant source of revenue for the Government, but with property transactions slowing and tax receipts falling by 24% between 2022-2023 and 2023-2024, adjustments have been made. This means that many buyers will face higher SDLT costs from April 2025.

If you’re in the process of buying a property, acting before the new rates come into effect could save you thousands. Here’s everything you need to know about the upcoming changes.

Current Stamp Duty Rates (Until 31st March 2025)

For homeowners purchasing a main residence, the current SDLT rates are:

If you complete your purchase before 1st April 2025, you will pay SDLT under the above rates.

New Stamp Duty Rates (From 1st April 2025)

For transactions completing on or after 1st April 2025, new thresholds will apply:

This means that anyone purchasing a property above £125,000 will pay more SDLT than under the previous system.

What About First-Time Buyers?

First-time buyers currently benefit from an exemption on the first £425,000 of their purchase. However, from 1st April 2025, this threshold will drop to £300,000.

If you’re a first-time buyer looking to save on SDLT, completing before April 2025 could make a big difference.

Impact on Second Homes and Buy-to-Let Investors

From 1st April 2025, those purchasing additional properties, such as buy-to-lets or holiday homes, will also be affected. The Government has already increased the additional property surcharge from 3% to 5% (as of 31st October 2024), making investment properties more expensive.

Key Takeaways and Next Steps

• Buy before 1st April 2025 to take advantage of the current lower SDLT rates.

• First-time buyers should act fast, as the discount threshold is decreasing.

• Buy-to-let investors will face increased costs, making careful financial planning essential.

• Speak to your conveyancer and mortgage provider to ensure a smooth and timely transaction.

If you’re looking to buy a property, Hawthorn & Co is here to guide you through these changes. Get in touch with our team today to explore your options before the new SDLT rates come into effect.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Always consult with a qualified professional for specific guidance on your situation.