Stamp Duty Threshold Changes April 2025 — How the SDLT Reversal Affects Buyers

The September 2022 Temporary Changes

In September 2022, the then-Chancellor announced a package of SDLT cuts intended to stimulate the housing market. The key changes were:

• The nil-rate threshold for all buyers rose from £125,000 to £250,000
• The first-time buyer nil-rate threshold rose from £300,000 to £425,000
• The maximum property value eligible for first-time buyer relief rose from £500,000 to £625,000

These changes were explicitly temporary, with a sunset date of 31 March 2025.

The April 2025 Reversion

From 1 April 2025, SDLT rates reverted to the pre-September 2022 position:

For first-time buyers, the nil-rate band reverted to £300,000 (from £425,000), and the upper limit for first-time buyer relief reverted to £500,000 (from £625,000).

The Financial Impact

The practical difference is significant for many buyers. Consider a buyer purchasing a £300,000 property:

Before 1 April 2025 (temporary thresholds):

0% on £250,000, then 5% on remaining £50,000 = £2,500 total SDLT.

From 1 April 2025 (reverted thresholds):

0% on £125,000 + 2% on £125,000 (£2,500) + 5% on £50,000 (£2,500) = £5,000 total

That is £2,500 more SDLT on a £300,000 purchase after the reversion.

First-Time Buyers: The Detailed Position

First-time buyers face the steepest change. Under the reverted rules:

• Properties up to £300,000: 0% SDLT
• Properties £300,001–£500,000: 0% on first £300,000; 5% on the remainder
• Properties above £500,000: no first-time buyer relief applies; standard rates throughout

Under the temporary rules that expired, first-time buyers paid 0% on the first £425,000. A first-time buyer purchasing at £450,000 now pays 5% on £150,000 (£7,500) versus 5% on £25,000 (£1,250) previously — a difference of £6,250.

Practical Advice

If you were in a position to exchange contracts before 31 March 2025, the liability was determined at the date of completion (for most straightforward transactions). Buyers who completed after that date face the higher bill regardless of when they exchanged.

Going forward, first-time buyers purchasing above £300,000 should factor the full SDLT cost into their budget. Buyers on the cusp of a threshold — for example, considering whether to buy at £499,000 or £505,000 — should use an SDLT calculator to understand the cliff-edge difference in tax cost.

HMRC’s official SDLT calculator at gov.uk provides an instant calculation for any transaction. Property Passport UK sold price data can help you understand whether a property is realistically priced within a given threshold.