Stamp Duty Land Tax Thresholds Fall Back From Today: What Buyers Now Pay

The higher thresholds were introduced from 23 September 2022 and were always time-limited. SDLT does not apply in Scotland or Wales, which have their own property transaction taxes.

The rates from 1 April 2025

For a standard residential purchase, the bands are now nil up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million. Under the temporary regime, the 2% band did not exist and the 5% band started at £250,001, so a buyer of a £250,000 home now pays £2,500 that was not due last week.

First-time buyers' relief also tightens. The nil-rate band for eligible first-time buyers falls from £425,000 to £300,000, with 5% due on the portion up to the maximum price. That maximum purchase price falls from £625,000 to £500,000; above it, the relief is not available and standard rates apply to the whole price.

Additional homes and companies

The reverted Stamp Duty Land Tax thresholds also feed through to the higher rates. Since 31 October 2024, the surcharge on additional dwellings, which also applies to companies buying residential property, has been 5 percentage points rather than 3, and the single rate for non-natural persons buying dwellings over £500,000 has been 17%, as set out in a separate HMRC policy paper. From 1 April 2025 the higher-rate bands run at 5% up to £125,000, 7% from £125,001 to £250,000, 10% to £925,000, 15% to £1.5 million and 17% above.

Transitional cases

Contracts that were substantially performed during the temporary period and that completed later without variation, can still benefit from the temporary thresholds. Conveyancers, investors and developers should check effective dates carefully on any transaction that straddled the change, because the effective date rather than the exchange date usually decides which rates apply.

Sources

• GOV.UK: Stamp Duty Land Tax, temporary increase to thresholds
• GOV.UK: Stamp Duty Land Tax, increase to the higher rates on additional dwellings and the single rate for non-natural persons