Stamp duty second home

There are important Stamp Duty Land Tax (SDLT) changes taking effect on and from 1 April 2025 that will affect buyers and, indirectly, sellers of residential property.

In this article, our tax consultant solicitor Michael Fluss outlines the key updates to be aware of.

1. Other than where first-time buyer’s relief is available, an additional £2.5k SDLT will become chargeable on any residential property acquired for £250k or more.

   This is because the SDLT nil rate band threshold will then fall back from £250k to £125k (as was the case before 23 September 2022) and SDLT will (as before that date) be chargeable at 2% (or where the higher rate on additional dwellings and/or non-UK resident surcharge applies, an additional 2%) on the difference.

2. Reductions in the scope of first-time buyer’s relief will result in up to £6.25k additional SDLT becoming chargeable where the relief is claimed in relation to any residential property purchased for more than £300k.

   This is because, reverting to the pre-23 September 2022 position:

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