In the 2022 Autumn Budget, the then Chancellor Jeremy Hunt implemented a temporary increase in the Stamp Duty Land Tax (SDLT) thresholds for homebuyers and first-time buyers. As of 31st March 2025, these thresholds are set to revert to their previous levels and increase the amount of SDLT payable for all buyers.
In this article Stevie Heafford, Tax Partner at HW Fisher, explains the impact these changes will have on homebuyers.
First-time buyers
For first-time buyers, a special nil-rate threshold applies for properties that do not exceed the maximum purchase price. At present, the special nil-rate threshold is £425,000 and the maximum purchase price is £625,000. However, from 31 March 2025, these will reduce to £300,000 and £500,000 respectively. For a first-time buyer purchasing a house in the UK for £425,000, they will be worse off by £6,250.
In the table below, we compare current SDLT rates for UK residents when purchasing their first residential property with what they will pay from 31st March 2025.
| Purchase Price | Current First Time Buyer Rates until 31st March 2025 | First Time Buyer Rates from 31st March 2025 |
| Up to £300,000 | 0% | 0% |
| £300,001 to £425,000 | 0% | 5% |
| £425,001 to £500,000 | 5% | 5% |
| £500,001 to £625,000 | 5% | No relief, standard rates apply |
| £625,001 to £730,885 | No relief, standard rates apply | No relief, standard rates apply |
Homebuyers
For a homebuyer, excluding first-time buyers, the general nil-rate threshold will reduce from £250,000 to £125,000 from 31st March 2025. For those acquiring a house for £350,000, this change will give rise to an SDLT bill of £7,500 – an increase of £2,500 over the current residential rates. The same increase will apply to all purchases in excess of £250,000.
In the table below, we compare current rates of SDLT for UK residents on a standard residential purchase when replacing a main residence with what they will pay from 31st March 2025.
| Purchase Price | Current Standard Residential Rates until 31st March 2025 | Standard Residential Rates from 31st March 2025 |
| Up to £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £950,000 | 5% | 5% |
| £950,001 – £1,500,000 | 10% | 10% |
| £1,500,000 + | 12% | 12% |
Stevie Heafford, Tax Partner commented “We urge Chancellor Rachel Reeves to prioritise Stamp Duty in the next budget. If Labour is hoping to create a better property market, then it needs to prioritise support for first-time buyers and home buyers alike. With house prices rising and cost of living at an all-time high, the government should strongly consider extending the Stamp Duty tax relief provided to first-time buyers through the previous government.”
If you are interested in finding out how the reversal of the SDLT relief will impact your personal circumstances, get in touch today.
We’d love to hear from you. To book an appointment or to find out more about our services:
