The upcoming 31 March 2025 deadline for Stamp Duty Land Tax (SDLT) relief marks a crucial moment for buyers. Significant changes to the current thresholds will come into effect on 1 April 2025, increasing costs for first-time buyers, home movers, and landlords.
Current Rates for First-Time Buyers (Until 31 March 2025)
• 0% Stamp Duty: Up to £425,000.
• 5% Stamp Duty: On the portion from £425,001 to £625,000.
For example, buying a £450,000 property would result in a £1,250 Stamp Duty cost.
New Rates for First-Time Buyers (From 1 April 2025)
• 0% Stamp Duty: Up to £300,000.
• 5% Stamp Duty: On the portion from £300,001 to £500,000.
After the deadline, the same £450,000 property will incur £7,500 in Stamp Duty, an increase of £6,250. Additionally, the maximum property value eligible for first-time buyer relief will drop from £625,000 to £500,000, making higher-value purchases more expensive.
Changes for Home Movers
• The 0% threshold will revert to £125,000 from the current £250,000.
• A new 2% rate will apply to properties priced between £125,001 and £250,000.
Changes for Additional Property Purchases
From 1 April 2025, buyers of second homes and buy-to-let properties will face a 7% rate for properties priced between £125,001 and £250,000.
How to Prepare
1. Complete Early: Aim to complete your purchase before 31 March 2025 to benefit from the current thresholds.
2. Reassess Budgets: Plan for higher upfront costs if purchasing after the deadline.
3. Seek Professional Advice: A mortgage adviser or conveyancer can help ensure accurate calculations and timely completion.
