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Upcoming changes to Stamp Duty Land Tax (SDLT) and how it will affect Purchasers

Writer's picture: Angeline MartinAngeline Martin

In October 2024, the Government announced changes to SDLT calculations. Some of those changes came into effect at the time whilst the implementation of others was delayed until the 1stĀ April 2025. If you are in the process of purchasing a property, or you are considering buying one soon, it is important to bear this in mind as the SDLT liability will be increasing and this could affect your budgeting.


Under the current system, SDLT becomes payable when the purchase price of the property you are buying reaches the following thresholds:


  • Ā£250,000 for residential properties

  • Ā£425,000 for first-time buyers buying aĀ residential propertyĀ worth Ā£625,000 or lessĀ Ā 

  • Ā£150,000 for non-residential land and properties

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On the 1st April 2025, these thresholds are to reduce and SDLT will be applicable as follows:


  • Ā£125,000 for residential properties

  • Ā£300,000 for first-time buyers buying a residential propertyĀ worth Ā£500,000 or less

  • Ā£150,000 for non-residential land and properties

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Full details on what constitutes a residential property for SDLT purposes together details on when any surcharge will be applied (for example, second home purchases) and a breakdown of all current and proposed SDLT thresholds can be found on the Government website: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates.

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There is also a helpful SDLT calculator available (https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro) that you can use to input different dates and potential purchase prices so you are able to calculate and manage your budget.

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Please note that if you are in the process of purchasing a property before the changes are implemented but do not complete until afterĀ the 1stĀ April, you will still be liable for the increase in SDLT payable. It is very important that you are aware that our conveyancing quotes provide SDLT calculations based on the current rules, regulations and thresholds in place at the time the quote is provided and do not take account of future changes.



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