Stamp duty guide
Stamp Duty Changes 2025: What's Changed and How Much Will You Pay?
Stamp Duty Changes 2025 refers mainly to the end of the temporary SDLT thresholds in England and Northern Ireland on 31 March 2025. From 1 April 2025, the standard threshold reverted to £125,000, first-time buyer relief reverted to £300,000, and the first-time buyer upper price limit reverted to £500,000.
In short
The stamp duty changes 2025 mainly reversed temporary SDLT cuts in England and Northern Ireland from 1 April 2025. The standard nil-rate threshold fell from £250,000 to £125,000. First-time buyer relief fell from £425,000 to £300,000, and the maximum eligible first-time buyer price fell from £625,000 to £500,000.
SDLT bands - England & Northern Ireland
Administered by HMRC.
| Band | Standard rate | Additional dwelling |
|---|---|---|
| £0 - £125,000 | 0% | 5% higher-rate band where applicable |
| £125,001 - £250,000 | 2% | 7% higher-rate band where applicable |
| £250,001 - £925,000 | 5% | 10% higher-rate band where applicable |
| £925,001 - £1,500,000 | 10% | 15% higher-rate band where applicable |
| Over £1,500,000 | 12% | 17% higher-rate band where applicable |
Stamp Duty Changes 2025: the short version
The temporary SDLT thresholds introduced in September 2022 ended on 31 March 2025. From 1 April 2025, the standard nil-rate threshold reverted from £250,000 to £125,000. First-time buyer relief reverted from 0% up to £425,000 to 0% up to £300,000. The maximum price eligible for first-time buyer relief reverted from £625,000 to £500,000. These changes affect England and Northern Ireland only; Scotland and Wales use separate devolved systems.
| Threshold | Temporary level to 31 March 2025 | From 1 April 2025 |
|---|---|---|
| Standard nil-rate threshold | £250,000 | £125,000 |
| First-time buyer nil-rate threshold | £425,000 | £300,000 |
| FTB relief maximum property price | £625,000 | £500,000 |
| Jurisdictions affected | England & Northern Ireland | England & Northern Ireland |
Chronological summary of the April 2025 reversion
On 23 September 2022, the UK government temporarily increased SDLT thresholds to reduce upfront purchase costs. The standard nil-rate band rose to £250,000, and first-time buyer relief became more generous. Those temporary thresholds were scheduled to end on 31 March 2025. For most completions from 1 April 2025 onward, the previous lower thresholds returned. Buyers who exchanged before the change still usually look to completion as the key effective date, so timing mattered for transactions close to the deadline.
| Date | Change | Buyer impact |
|---|---|---|
| 23 September 2022 | Temporary SDLT thresholds began | Many standard and first-time buyers paid less |
| 31 March 2025 | Temporary period ended | Deadline for most completions using temporary thresholds |
| 1 April 2025 | Thresholds reverted | Higher SDLT for many buyers |
Worked example: £300,000 standard buyer before vs after
A standard buyer at £300,000 paid £2,500 under the temporary threshold because the first £250,000 was taxed at 0% and the remaining £50,000 at 5%. After 1 April 2025, the same buyer pays £5,000: £2,500 on the £125,001 - £250,000 band and £2,500 on the £250,001 - £300,000 slice.
First-time buyer impact examples
The biggest behavioural impact sits in the first-time buyer market. A first-time buyer at £450,000 paid £1,250 under the temporary relief because only £25,000 was taxed at 5%. From 1 April 2025, the same buyer pays £7,500 because the 0% band only runs to £300,000. A buyer at £625,000 was eligible for temporary relief before the deadline, but after the reversion the purchase is above the £500,000 relief limit and standard rates apply.
| FTB price | Before 1 April 2025 | From 1 April 2025 | Increase |
|---|---|---|---|
| £300,000 | £0 | £0 | £0 |
| £450,000 | £1,250 | £7,500 | £6,250 |
| £500,000 | £3,750 | £10,000 | £6,250 |
| £625,000 | £10,000 | £21,250 | £11,250 |
Who is most affected?
The most affected buyers are standard buyers above £125,000 and first-time buyers in the £300,000 to £625,000 range. Standard buyers around £250,000 moved from paying no SDLT to paying up to £2,500. First-time buyers between £425,000 and £500,000 still qualify for relief, but pay more than before. First-time buyers between £500,001 and £625,000 lost eligibility entirely, which can create a sharp cliff in tax cost.
| Buyer group | Why affected | Typical planning point |
|---|---|---|
| Standard buyers above £125,000 | Nil-rate threshold fell | Budget for SDLT earlier |
| FTBs £300,001 - £500,000 | Lower nil-rate band | Relief still applies but less generous |
| FTBs £500,001 - £625,000 | Upper limit fell | Standard rates apply |
| Scotland/Wales buyers | Not SDLT jurisdictions | Use LBTT or LTT instead |
England and Northern Ireland only
The 2025 SDLT threshold reversion does not change Scottish LBTT or Welsh LTT. Scotland has its own residential LBTT bands and first-time buyer relief. Wales has its own LTT bands and no separate first-time buyer relief. A UK-wide calculator must therefore ask for jurisdiction before calculating the tax, because the same £400,000 purchase can produce different outcomes in England, Scotland and Wales.
| Nation | Tax system | April 2025 SDLT threshold reversion applies? |
|---|---|---|
| England | SDLT | Yes |
| Northern Ireland | SDLT | Yes |
| Scotland | LBTT | No |
| Wales | LTT | No |
Use the calculator after the 2025 change
The safest way to understand the practical impact is to calculate the tax using completion-date rates and your buyer type. This is especially important for first-time buyers near the £500,000 eligibility cliff and for buyers of additional dwellings, where current higher-rate rules can materially change the bill.
Check how the April 2025 threshold reversion affects your exact purchase price.
Calculate My Stamp Duty →Frequently Asked Questions
The main April 2025 change was the end of the temporary SDLT thresholds introduced in September 2022. From 1 April 2025, the standard nil-rate threshold reverted from £250,000 to £125,000, the first-time buyer nil-rate threshold reverted from £425,000 to £300,000, and the first-time buyer relief upper limit reverted from £625,000 to £500,000.
The threshold changes took effect for transactions completing on or after 1 April 2025, unless transitional rules applied because the contract had been substantially performed during the temporary relief period.
A standard buyer at £300,000 pays £5,000 after the April 2025 reversion. Under the temporary threshold, the same standard buyer paid £2,500, so the difference is £2,500.
Yes. In England and Northern Ireland, the first-time buyer nil-rate band reverted from £425,000 to £300,000 and the maximum purchase price eligible for first-time buyer relief reverted from £625,000 to £500,000.
No. Scotland uses LBTT, not SDLT. UK government SDLT threshold changes do not directly apply to Scottish purchases, although Scottish budgets can change LBTT separately.
No. Wales uses LTT, not SDLT. Welsh rates are set by the Welsh Government and administered by the Welsh Revenue Authority.
The biggest impact is on buyers in England and Northern Ireland purchasing above £125,000, especially first-time buyers between £425,000 and £625,000 who lost part or all of the temporary relief.
For new transactions after 1 April 2025, no. The relevant date is usually completion. Transitional rules may apply to some contracts substantially performed before 1 April 2025, but buyers should confirm this with a solicitor.
Related stamp duty pages
- UK stamp duty calculator
Calculate SDLT, LBTT or LTT by jurisdiction and buyer type.
- Stamp duty rates
See the current SDLT, LBTT and LTT rates.
- Stamp duty first-time buyers
Understand the post-April 2025 first-time buyer thresholds.
- Stamp duty second home
Check higher rates for additional dwellings.
- What is stamp duty
Read the plain-English definition and buyer guide.