The Upcoming Changes to Stamp Duty Land Tax (SDLT) in 2025 – What It Means for Buyers and Sellers
The Upcoming Changes to Stamp Duty Land Tax (SDLT) in 2025 – What It Means for Buyers and Sellers
If you’re planning on buying or selling a house in 2025, you should be aware of the upcoming changes to the Stamp Duty Land Tax (SDLT) regime, which could significantly affect your finances. These changes are set to take effect from 1 April 2025 and will result in higher SDLT liabilities for many property transactions.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a mandatory tax paid by buyers of residential and commercial property in Northern Ireland. It is due upon the completion of a property purchase, but not all transactions require SDLT—if the purchase price is below the set thresholds, no SDLT is payable.
To stimulate the housing market, the UK Government temporarily increased the SDLT thresholds in September 2022. However, these temporary changes are due to end on 1 April 2025, which could lead to higher costs for buyers and sellers.
Changes to SDLT from 1 April 2025
From 1 April 2025, the thresholds for SDLT will return to their pre-2022 levels. This means a significant number of transactions may incur higher tax liabilities.
Current SDLT Rates (until 31 March 2025)
For standard residential purchases by individuals who do not own other properties:
Up to £250,000: 0% (no SDLT)
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Above £1.5 million: 12%
New SDLT Rates (from 1 April 2025)
Up to £125,000: 0% (no SDLT)
£125,001 to £250,000: 2%
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Above £1.5 million: 12%
How Will the SDLT Changes Affect Buyers?
To illustrate the financial implications, here’s an example:
Buying a property for £300,000
Before 1 April 2025:
0% on the first £250,000 = £0
5% on the remaining £50,000 = £2,500
Total SDLT: £2,500
2. On or after 1 April 2025:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the remaining £50,000 = £2,500
Total SDLT: £5,000
This example shows how acting before 1 April 2025 could save buyers £2,500.
What About First-Time Buyers?
First-time buyers benefit from a Stamp Duty relief, but the thresholds for this relief are also changing:
Current SDLT Thresholds for First-Time Buyers (until 31 March 2025)
0% on the first £425,000
5% on the portion between £425,001 and £625,000 (no relief if the purchase price exceeds £625,000)
New SDLT Thresholds for First-Time Buyers (from 1 April 2025)
0% on the first £300,000
5% on the portion between £300,001 and £500,000 (no relief if the purchase price exceeds £500,000)
Example for a £450,000 Property:
Before 1 April 2025:
0% on the first £425,000 = £0
5% on the remaining £25,000 = £1,250
Total SDLT: £1,250
On or after 1 April 2025:
0% on the first £300,000 = £0
5% on the remaining £150,000 = £7,500
Total SDLT: £7,500
First-time buyers could see their SDLT liability rise by £6,250 if they complete after the changes take effect.
What Does This Mean for Sellers?
While SDLT is paid by buyers, the changes could indirectly impact sellers too. Prospective buyers may factor the higher SDLT liability into their offers, potentially driving property prices down. If you’re in a chain, delays could also mean missing the current SDLT thresholds, which could increase costs for everyone involved.
Why You Need a Property Solicitor
Whether you’re a buyer or a seller, navigating these changes can be complex. An experienced conveyancing solicitor can help you:
Understand your Stamp Duty liability.
Ensure your transaction completes before the SDLT changes take effect.
Handle the legal aspects of your house sale or purchase smoothly and efficiently.
Act Now to Avoid Higher Costs
With the SDLT changes fast approaching, acting early could save you thousands of pounds. Our expert property solicitors are here to assist with all aspects of your residential conveyancing.
Contact us today to speak to a member of our conveyancing team to request a free initial consultation.:
Call us on 028 9544 2470
Email us at hello@turley.legal