The temporary increase in the Stamp Duty Land Tax (SDLT) threshold, which reduced the amount of tax many purchasers paid for their residential property, is due to end on 31 March 2025. The current SDLT thresholds are as follows:

• no tax to be paid on properties up to the value of £250,000.
• a threshold for first-time buyers of up to £425,000 applicable to properties worth up to £625,000.

The Labour Government has previously said it would not intervene to delay or halt the change, and amends are not expected in the autumn Budget, meaning from 1 April 2025, the SDLT thresholds will revert to the following:

• no tax to be paid on properties up to the value of £125,000.
• a threshold for first-time buyers of £300,000 applicable to properties worth up to £500,000.

As the 2025 SDLT change will bring far more properties into the bracket where a portion of the value of the property is subject to 5% stamp duty, purchasers who complete before the deadline could save as much as £2,500 in SDLT and first-time buyers could benefit up to £11,250.

As property transactions take an average of 3-6 months to complete, it’s worth bearing in mind these impending changes when doing your property purchase calculations, as a property completion date that falls after 31 March 2025 deadline could result in a significantly higher tax burden.

The amount of SDLT payable on a residential property is dependent on a number of variables including the purchase price, whether the property is a main residence, if the purchaser is a first-time buyer, and if they have UK residency. The government has a SDLT calculator you can use which can be found here.

For further information or legal advice, please contact our Residential Property team.