On 1 April 2025, the temporary Stamp Duty Land Tax thresholds introduced in 2022 were removed. For most buyers in England and Northern Ireland this means paying more — in some cases significantly more. Here is a plain-language breakdown of what changed, what it costs, and what you can do about it.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid by buyers in England and Northern Ireland when purchasing a property above a certain value. The rate is calculated in bands — like income tax — so you pay each rate only on the portion of the price that falls within that band.
The rate tables: before and after April 2025
Standard buyers
| Property value band | Rate before 1 April 2025 | Rate from 1 April 2025 |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| Above £1,500,000 | 12% | 12% |
The only change for standard buyers is the 0% band: it has dropped from £250,000 back to £125,000. Every buyer purchasing above £250,000 now pays 2% on the £125,001–£250,000 portion — an extra £2,500 on any property priced above £250,000.
First-time buyers
| Property value band | Rate before 1 April 2025 | Rate from 1 April 2025 |
|---|---|---|
| Up to £300,000 | 0% (threshold was £425,000) | 0% |
| £300,001 – £425,000 | 0% | 5% |
| £425,001 – £500,000 | 5% | 5% |
| £500,001 – £625,000 | 5% | Standard rates — no FTB relief |
| Above £625,000 | Standard rates — no FTB relief | Standard rates — no FTB relief |
The first-time buyer 0% threshold has dropped from £425,000 to £300,000, and the upper relief cap has fallen from £625,000 to £500,000. First-time buyers purchasing above £500,000 now receive no relief at all.
Additional property buyers (second homes, buy-to-let)
Additional property buyers pay the standard rates above plus a 5% surcharge on the full purchase price. This surcharge increased from 3% to 5% in October 2024 — separate from the April 2025 threshold change. Both increases now apply.
What does this mean in pounds?
Standard buyer examples
| Purchase price | SDLT before 1 April 2025 | SDLT from 1 April 2025 | Extra cost |
|---|---|---|---|
| £200,000 | £0 | £1,500 | +£1,500 |
| £300,000 | £2,500 | £5,000 | +£2,500 |
| £500,000 | £12,500 | £15,000 | +£2,500 |
| £750,000 | £25,000 | £27,500 | +£2,500 |
First-time buyer examples
| Purchase price | SDLT before 1 April 2025 | SDLT from 1 April 2025 | Extra cost |
|---|---|---|---|
| £300,000 | £0 | £0 | £0 |
| £350,000 | £0 | £2,500 | +£2,500 |
| £425,000 | £0 | £6,250 | +£6,250 |
| £500,000 | £3,750 | £10,000 | +£6,250 |
| £600,000 | £8,750 | £20,000 | +£11,250 |
Additional property buyer examples
| Purchase price | SDLT before Oct 2024 (3% surcharge) | SDLT from Apr 2025 (5% surcharge + new threshold) | Total extra cost |
|---|---|---|---|
| £300,000 | £11,500 | £20,000 | +£8,500 |
| £500,000 | £27,500 | £40,000 | +£12,500 |
| £750,000 | £47,500 | £65,000 | +£17,500 |
Additional property totals reflect both the October 2024 surcharge rise (3% to 5%) and the April 2025 threshold reversion combined.
Frequently asked questions
Why were these changes not highlighted in the Chancellor’s speech?
The government chose not to extend the temporary thresholds introduced in 2022. By not extending them, the rates reverted automatically to their pre-2022 levels. The decision appeared in the full Budget documentation rather than as a headline announcement.
Do these changes apply in Scotland and Wales?
No. Scotland operates Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both devolved and set independently. If you are buying in either country, check the devolved rates directly.
I am a first-time buyer purchasing above £500,000 — what applies to me?
You receive no first-time buyer relief. Standard SDLT rates apply in full. On a £550,000 purchase that means £22,500 in Stamp Duty — the same as any non-first-time buyer at that price.
Can I reduce my Stamp Duty bill?
The rates are fixed by HMRC. However, where a property is sold with contents — white goods, curtains, garden furniture — the value of those items can sometimes be separated from the property price and excluded from the SDLT calculation. This must be declared accurately to HMRC, who actively review these apportionments.
How can Hauseit help?
We will give you an honest view of what Stamp Duty will cost on any property you are considering, factor it into your budget from the first conversation, and connect you with an independent mortgage adviser to help plan your overall purchasing costs. Get in touch with Mohammad or Imran directly — no call-centres, no junior staff.
