Stamp Duty Changes April 2025: What First-Time Buyers Need to Know
From 1 April 2025, the first-time buyer SDLT relief threshold reverted from £425,000 back to £300,000. This means a first-time buyer purchasing a £450,000 home now pays £7,500 in stamp duty — compared to £1,250 under the old rules. Here's exactly what changed.
What Was Changed (and Why)
In September 2022, the then-Chancellor announced temporary increases to SDLT thresholds to stimulate the housing market. These changes were always time-limited:
| Threshold | Before Sept 2022 | Sept 2022 – March 2025 (temporary) | From 1 April 2025 (current) |
|---|---|---|---|
| Standard nil-rate band | £125,000 | £250,000 | £125,000 |
| FTB nil-rate band | £300,000 | £425,000 | £300,000 |
| FTB maximum property value | £500,000 | £625,000 | £500,000 |
The temporary reliefs expired on 31 March 2025, and the previous permanent structure was reinstated from 1 April 2025.
SDLT Rates for First-Time Buyers: 2025/26
For purchases completing on or after 1 April 2025:
| Purchase price | First-time buyer SDLT |
|---|---|
| Up to £300,000 | 0% |
| £300,001–£500,000 | 5% on the portion above £300k |
| Above £500,000 | No FTB relief — standard rates apply |
Important: For FTB relief to apply, the property must cost £500,000 or less. Above that threshold, you pay standard SDLT as if you were not a first-time buyer.
SDLT by Purchase Price: First-Time Buyers (2025/26)
| Purchase Price | SDLT Calculation | Total SDLT | SDLT vs Standard (non-FTB) |
|---|---|---|---|
| £200,000 | 0% on all | £0 | Standard = £1,500 — FTB saves £1,500 |
| £250,000 | 0% on all | £0 | Standard = £2,500 — FTB saves £2,500 |
| £300,000 | 0% on all | £0 | Standard = £5,000 — FTB saves £5,000 |
| £350,000 | 0% on £300k + 5% on £50k | £2,500 | Standard = £7,500 — FTB saves £5,000 |
| £400,000 | 0% on £300k + 5% on £100k | £5,000 | Standard = £10,000 — FTB saves £5,000 |
| £450,000 | 0% on £300k + 5% on £150k | £7,500 | Standard = £12,500 — FTB saves £5,000 |
| £500,000 | 0% on £300k + 5% on £200k | £10,000 | Standard = £15,000 — FTB saves £5,000 |
| £500,001+ | No FTB relief — standard rates | Standard | No saving |
Note: FTB saves a maximum of £5,000 in SDLT — the same as the maximum threshold difference (£300k nil-rate vs £125k standard nil-rate = £175k × 2% extra + part at 5%).
What Did the Temporary Rules Cost Those Who Bought Late?
Anyone who completed their purchase between September 2022 and 31 March 2025 benefited from the higher thresholds. Those who completed from 1 April 2025 onward pay under the reverted rules.
| Purchase price | SDLT Mar 2025 (old rules) | SDLT Apr 2025+ (new rules) | Extra cost from April |
|---|---|---|---|
| £350,000 | £0 (all below £425k threshold) | £2,500 | +£2,500 |
| £400,000 | £0 (all below £425k threshold) | £5,000 | +£5,000 |
| £450,000 | £1,250 (5% on £25k above £425k) | £7,500 | +£6,250 |
| £500,000 | £3,750 (5% on £75k above £425k) | £10,000 | +£6,250 |
First-time buyers who completed at £450,000 just before the deadline (March 2025) saved £6,250 compared to those completing the day after (April 2025).
Standard SDLT Rates (All Buyers, from 1 April 2025)
For buyers who are not first-time buyers, or for properties above £500,000:
| Purchase Price | Rate | Notes |
|---|---|---|
| Up to £125,000 | 0% | Nil-rate reverted from £250k |
| £125,001–£250,000 | 2% | |
| £250,001–£925,000 | 5% | |
| £925,001–£1,500,000 | 10% | |
| Over £1,500,000 | 12% |
Second home / additional property: Standard rates + 5% surcharge on the full price.
Non-UK buyer: Standard rates + 2% surcharge (introduced 2021, still applies).
Scotland and Wales: Not Affected
The April 2025 SDLT change only affects England and Northern Ireland. Scotland and Wales have their own systems:
| Nation | Land Transaction Tax | Current threshold |
|---|---|---|
| Scotland | LBTT (Land and Buildings Transaction Tax) | 0% up to £145,000 (standard) |
| Scotland FTB | First-Time Buyer LBTT Relief | 0% up to £175,000 for FTBs |
| Wales | LTT (Land Transaction Tax) | 0% up to £225,000 (standard) |
| Wales FTB | No separate FTB relief in Wales | Same as standard rates |
Welsh first-time buyers benefit from the standard LTT nil-rate threshold of £225,000 — no separate FTB relief.
How to Qualify for First-Time Buyer Relief
To claim FTB SDLT relief:
- Neither purchaser has previously owned a residential property anywhere in the world (not just the UK)
- The property must be £500,000 or less (entire purchase price, not just your share)
- You must be buying a main residential property — not investment or buy-to-let
- The relief is declared on the SDLT return submitted by your solicitor or conveyancer
Joint purchases: both buyers must be first-time buyers for the relief to apply. If one partner has previously owned property, neither gets FTB relief.
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