Stamp Duty Before and After April 2025
Compare the stamp duty changes that came into effect on 1 April 2025. Understand how the threshold reductions and surcharge increase affect different buyer types.
Key Changes from 1 April 2025
- •Standard nil-rate band reduced: £250,000 → £125,000
- •FTB nil-rate band reduced: £425,000 → £300,000
- •FTB property limit reduced: £625,000 → £500,000
- •Additional property surcharge increased: 3% → 5%
In this article
What Changed in April 2025?
On 1 April 2025, temporary stamp duty thresholds introduced in September 2022 expired, reverting to their pre-2022 levels. These changes affected all buyers in England and Northern Ireland purchasing residential property. Use our stamp duty calculator to see current rates.
The changes were announced in the Autumn Budget 2024 and had been anticipated since the temporary thresholds were originally introduced with a sunset clause. The result is higher stamp duty bills for most buyers, particularly those purchasing properties between £125,000 and £625,000. For full details on all changes, see our comprehensive guide on current rates.
Threshold Changes Summary
The table below summarizes the four key changes that came into effect:
| Change | Before April 2025 | From April 2025 |
|---|---|---|
| Standard nil-rate band reduced from £250,000 to £125,000 | £250,000 | £125,000 |
| First-time buyer nil-rate band reduced from £425,000 to £300,000 | £425,000 | £300,000 |
| First-time buyer relief threshold reduced from £625,000 to £500,000 | £625,000 | £500,000 |
| Additional property surcharge increased from 3% to 5% | 3% | 5% |
Standard Rate Bands: Before and After
The most significant change for standard buyers (not first-time buyers or additional property purchasers) is the reduction in the nil-rate band from £250,000 to £125,000 and the introduction of a new 2% band for properties between £125,001 and £250,000. Explore the detailed history of these changes in our April 2025 changes guide.
Before April 2025
| Band | Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
From April 2025 (Current)
| Band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001–£250,000 | 2% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
The introduction of the 2% band between £125,001 and £250,000 means that buyers purchasing properties in this range now face stamp duty bills, whereas previously they paid nothing.
Complete Before vs After Rate Tables
Here are the complete rate structures before and after the April 2025 changes:
Standard Rates Change
Old nil-rate: £250,000
New nil-rate: £125,000
-£125,000 threshold
FTB Threshold Change
Old threshold: £425,000
New threshold: £300,000
-£125,000 threshold
Surcharge Increase
Old surcharge: 3%
New surcharge: 5%
+2 percentage points
Cost Increase at Every Price Point
| Property Price | Before April 2025 | After April 2025 | Extra Cost |
|---|---|---|---|
| £250,000 | £0 | £2,500 | +£2,500 |
| £350,000 | £5,000 | £7,500 | +£2,500 |
| £500,000 | £12,500 | £15,000 | +£2,500 |
| £750,000 | £25,000 | £27,500 | +£2,500 |
| £1,000,000 | £38,750 | £41,250 | +£2,500 |
Impact on First-Time Buyers
First-time buyers (FTBs) face two significant changes. See our dedicated analysis of the FTB impact from April 2025 for full detail:
- The FTB nil-rate band reduced from £425,000 to £300,000
- The property price limit for FTB relief reduced from £625,000 to £500,000
Before April 2025: FTBs paid 0% on the first £425,000 and 5% on the portion between £425,001 and £625,000 (for properties up to £625,000).
From April 2025: FTBs pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000 (for properties up to £500,000).
Critical Change for Higher-Priced Properties
First-time buyers purchasing properties priced between £500,001 and £625,000 lost access to FTB relief entirely. They now pay standard rates with no discount.
For example, a FTB purchasing at £550,000 previously paid £6,250 in stamp duty. From April 2025, they pay the standard rate of £17,500, an increase of £11,250.
First-Time Buyer Detailed Analysis
The FTB changes are the most significant for buyers in the £300,000-£500,000 price range:
| Price | FTB (Before) | FTB (After) | Increase |
|---|---|---|---|
| £300,000 | £0 | £0 | £0 (No change) |
| £400,000 | £0 | £5,000 | +£5,000 |
| £500,000 | £3,750 | £10,000 | +£6,250 |
| £550,000 | £6,250 | £17,500 | +£11,250 (lost relief) |
FTBs buying between £500,001 and £625,000 lost access to relief entirely, now paying full standard rates.
Surcharge Increase: 3% to 5%
The additional property surcharge, applied to buyers purchasing additional dwellings such as buy-to-let properties or second homes, increased from 3% to 5%.
This surcharge is applied to the entire purchase price, not just the portions above the nil-rate band. The increase significantly affects landlords and investors.
Example: £300,000 Buy-to-Let Purchase
Standard SDLT: £5,000
Before April 2025: £5,000 + (£300,000 × 3%) = £5,000 + £9,000 = £14,000 total
From April 2025: £5,000 + (£300,000 × 5%) = £5,000 + £15,000 = £20,000 total
Extra cost: £6,000
The surcharge increase alone adds £6,000 to a £300,000 BTL purchase, before accounting for the changes to the standard rate bands.
Who Was Hit Hardest?
The April 2025 changes affected different buyer groups in different ways:
Additional Property Buyers (Worst Hit)
The surcharge doubling from 3% to 5% hit buy-to-let investors and second home buyers hardest. A £300,000 BTL property went from £14,000 to £20,000 in SDLT (+£6,000). Combined with threshold changes, many landlords paused portfolio expansion entirely. For the full analysis, see our guide on the second home impact of these changes.
First-Time Buyers £300k-£500k (Heavily Impacted)
FTBs in this price range saw the largest absolute increases. A buyer at £400,000 went from £0 to £5,000. At £500,000: £3,750 to £10,000 (+£6,250). In high-cost regions like London, many FTBs lost access to relief entirely.
Non-Residents (Surcharges Stack)
Non-UK residents buying additional properties face both the 5% additional property surcharge AND the 2% non-resident surcharge, stacking to 7% on top of standard rates. This makes UK property investment extremely expensive for overseas buyers.
Worked Examples: How Much More?
The table below shows how stamp duty bills changed for different property prices and buyer types:
| Property Price | Buyer Type | Before April 2025 | Current Rate | Extra Cost |
|---|---|---|---|---|
| £200,000 | Standard | £0 | £1,500 | +£1,500 |
| £250,000 | Standard | £0 | £2,500 | +£2,500 |
| £300,000 | Standard | £2,500 | £5,000 | +£2,500 |
| £300,000 | First-Time Buyer | £0 | £0 | £0 |
| £400,000 | First-Time Buyer | £0 | £5,000 | +£5,000 |
| £500,000 | First-Time Buyer | £3,750 | £10,000 | +£6,250 |
| £300,000 | BTL (surcharge) | £9,000 | £15,000 | +£6,000 |
Note: BTL example shows surcharge only. Total SDLT would also include the standard rate component.
Frequently Asked Questions About Pre vs Post April 2025 Changes
How much more stamp duty after April 2025?
Standard residential buyers typically pay £2,500 more due to the nil-rate band reduction from £250,000 to £125,000. First-time buyers at £400,000 pay £5,000 more (was £0, now £5,000). Buy-to-let investors face even larger increases: a £300,000 BTL property costs £6,000 more in stamp duty surcharge alone (3% to 5% increase).
Did first-time buyer relief change?
Yes, significantly. The FTB nil-rate threshold dropped from £425,000 to £300,000, and the maximum property price for relief reduced from £625,000 to £500,000. FTBs buying at £400,000 now pay £5,000 instead of £0. FTBs buying above £500,000 lost access to relief entirely and pay standard rates.
What was the stamp duty holiday?
The "stamp duty holiday" was temporary COVID-era relief (July 2020-September 2022) that raised the nil-rate band to £500,000, then tapered to £250,000. That £250,000 threshold remained until 1 April 2025, when rates reverted to pre-COVID levels (£125,000 nil-rate). There is no current holiday. The April 2025 changes ended the temporary relief period.
Can I claim a refund if I completed after April 2025?
No. The April 2025 rates apply to all transactions completing on or after 1 April 2025. If you completed on 1 April or later, you must pay the current rates with no refund available. Only transactions that completed on or before 31 March 2025 qualified for the old rates. The completion date (not exchange date) determines which rates apply.
When did the 5% surcharge start?
The 5% additional property surcharge came into effect on 1 April 2025, replacing the previous 3% surcharge. It applies to all additional dwellings (buy-to-let, second homes) purchased on or after that date in England and Northern Ireland. The surcharge is added to each rate band, significantly increasing costs for landlords and investors.
Calculate Your Stamp Duty
Use our interactive calculators to see exactly how much stamp duty you'll pay under the current rates and compare with previous rates:
April 2025 Changes Guide
Detailed guide to all April 2025 changes with planning strategies.
Read Full Guide →Ready to see your numbers?
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.