Upcoming Stamp Duty Land Tax (SDLT) Changes from April 2025

From 1 April 2025, significant updates to Stamp Duty Land Tax (SDLT) will come into effect, potentially reshaping property transactions across England. Whether you’re a first-time buyer, a property investor, or an existing homeowner, understanding these changes is vital. At Burd Ward Solicitors, we’re here to guide you through these updates and help you navigate their impact on your property dealings.

What is SDLT?

Stamp Duty Land Tax (SDLT) is a government tax applied to property purchases in England. The amount payable depends on the property price, with higher-value transactions incurring higher rates. Knowing the SDLT rules is essential for anyone buying residential or commercial property.

Key SDLT Changes from April 2025

The upcoming SDLT changes aim to improve housing affordability and influence market behaviour. Here are the main updates:

  1. Revised SDLT Rates for Residential Properties
    • 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%
  2. Updates for First-Time Buyers
    • SDLT-free threshold increases to £300,000.
    • Purchases between £300,001 and £500,000 will incur a 5% rate.
    • Properties exceeding £500,000 do not qualify for relief.
  3. Higher Surcharge for Additional Properties

    The surcharge on buy-to-let and second homes will rise to 5% across all bands:

    • Up to £125,000: 5%
    • £125,001 to £250,000: 7%
    • £250,001 to £925,000: 10%
    • £925,001 to £1.5 million: 15%
    • Above £1.5 million: 17%
  4. Green Homes Incentive

    Buyers of energy-efficient homes (EPC rating A or B) will enjoy reduced SDLT rates, paying 1% less across all bands.

  5. Commercial Property Updates

    The lower SDLT band for commercial property transactions will increase from £150,000 to £200,000.

Who Will Be Most Affected by These Changes?

  1. First-Time Buyers

    The increased SDLT-free threshold will help first-time buyers save thousands on property purchases.

  2. Buy-to-Let Investors & Second Homeowners

    The higher surcharge makes additional property acquisitions more expensive, impacting investors and second-home buyers.

  3. Sellers of Energy-Efficient Homes

    Properties with high energy efficiency (EPC A or B) may attract more buyers due to SDLT discounts.

  4. Commercial Property Buyers

    New thresholds will require careful financial planning for those acquiring commercial properties.

Preparing for the SDLT Changes

As the property market reacts to these changes, here are some practical steps to consider:

  • Plan Your Purchase Timeline: Decide whether to buy before or after 1 April 2025 based on the new rates.
  • Improve Energy Efficiency: Enhance your property’s EPC rating to attract buyers and take advantage of SDLT discounts.
  • Seek Expert Advice: SDLT calculations can be complex. Consulting experienced solicitors, like our team at Burd Ward, ensures compliance and maximizes potential savings.

Why Choose Burd Ward Solicitors?

Navigating SDLT changes can be challenging, but you don’t have to face it alone. At Burd Ward Solicitors, we specialise in property law and offer tailored legal advice to suit your needs. Our team of experts is here to support you with all aspects of conveyancing, from understanding SDLT rules to managing complex property transactions.

If you have questions about how the SDLT changes will affect you, get in touch with Burd Ward Solicitors. Let us provide the clarity and confidence you need for your property journey.