The temporary SDLT thresholds introduced in September 2022 expired on 31 March 2025. Combined with the increase to the additional property surcharge announced in the October 2024 Autumn Budget, this means the vast majority of property buyers now pay more stamp duty than they would have 12 months ago.
What changed on 1 April 2025
Standard rates: nil-rate band halved
The nil-rate threshold for standard purchasers (people moving home) dropped from £250,000 back to £125,000. This means buyers now start paying SDLT at a much lower price point.
| Band | Before 1 Apr 2025 | From 1 Apr 2025 |
|---|---|---|
| £0 – £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| Over £1,500,000 | 12% | 12% |
First-time buyers: relief significantly reduced
First-time buyer relief has been scaled back:
- Nil-rate threshold dropped from £425,000 to £300,000
- Maximum property price dropped from £625,000 to £500,000 — above this, FTB relief is lost entirely
- This means first-time buyers purchasing between £300,000 and £500,000 now pay SDLT where many previously paid nothing
Additional property surcharge: increased to 5%
The surcharge for additional residential properties (second homes, buy-to-let) increased from 3% to 5% on 31 October 2024 as part of the Autumn Budget. This surcharge applies on top of the standard rates, making second property purchases significantly more expensive.
Impact example
For a £300,000 second property, the surcharge alone is now £15,000 (up from £9,000 under the old 3% rate).
Impact: before and after comparison
Here's how the changes affect the SDLT bill on typical property purchases:
| Property price | Before Apr 2025 | From Apr 2025 | Increase |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £300,000 | £2,500 | £5,000 | £2,500 |
| £400,000 | £10,000 | £12,500 | £2,500 |
| £500,000 | £12,500 | £15,000 | £2,500 |
| £750,000 | £25,000 | £27,500 | £2,500 |
| £1,000,000 | £41,250 | £43,750 | £2,500 |
Standard purchaser (moving home). First-time buyers may pay less on properties up to £500,000.
First-time buyer comparison
| Property price | Before Apr 2025 | From Apr 2025 | Increase |
|---|---|---|---|
| £250,000 | £0 | £0 | £0 |
| £300,000 | £0 | £0 | £0 |
| £350,000 | £0 | £2,500 | £2,500 |
| £400,000 | £0 | £5,000 | £5,000 |
| £450,000 | £1,250 | £7,500 | £6,250 |
| £500,000 | £3,750 | £10,000 | £6,250 |
| £550,000 | £15,000* | £13,750 | -£1,250 |
*At £550,000+, FTB relief was lost entirely under old rules (cap was £625,000). Under new rules, relief is lost above £500,000. Standard rates may actually be lower in some edge cases.
Why chattels deductions matter more now
With more buyers now paying SDLT — and paying it at higher rates — the value of a chattels deduction has increased. Consider:
- A buyer at £200,000 previously paid zero SDLT and got no benefit from deducting chattels. Now they pay £1,500 — and a chattels deduction could reduce that.
- A first-time buyer at £400,000 previously paid zero SDLT. Now they pay £5,000 — a chattels deduction of £8,000 would save them £400.
- Any buyer in the 2% band (£125,000-£250,000) now pays tax where they previously paid nothing. Even a small chattels deduction produces a saving.
Bottom line
The April 2025 changes have made it more important than ever to ensure your SDLT return correctly apportions the purchase price between the property and any chattels included in the sale.
Calculate your stamp duty under the new rates
Our calculator is updated for the April 2025 changes. Check your SDLT liability instantly.