Can you beat April’s Stamp Duty increase?

On 1 April 2025, the rate of stamp duty on property will increase. It means, says property lawyers Broadfield, first time buyers and those moving up the property ladder will face a higher tax bill.

Here, Broadfield Partner Lorna du Sautoy, one of the UK’s leading residential property lawyers, explains what’s changing and how it will affect those buying their dream home.

“Stamp duty land tax (SDLT) will increase from 1 April 2025 for residential property transactions, ending the temporary SDLT reductions introduced in 2022. It will leave all buyers facing an increased tax bill.

“First time buyers will be hit hardest, with the 0% SDLT threshold dropping from £425,000 to £300,000. Additionally, first time buyers can currently claim first time buyers’ relief on properties worth up to £625,000. After 1 April, this threshold will return to £500,000.

“It is a double-whammy tax increase both in the scope of the relief and the reduction of the 0% threshold value with will cost, as an example, a first time buyer purchasing a £400,000 home an additional £5,000 in tax.

“Those moving up the property ladder will not escape the stamp duty changes, with the 0% SDLT threshold falling from £250,000 to £125,000, increasing the tax bill by a minimum of £2,500.

“SDLT for non-residential transactions, including ‘mixed-use’ properties, is not affected, with a top rate of 5% on consideration over £250,000.

“There is still a small window to complete a residential property purchase before 1 April, but probably only new freehold transactions and well-progressed leasehold transactions. Time is now running out…”

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