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%
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.
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.
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.
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.
Impact on First-Time Buyers
First-time buyers (FTBs) face two significant changes:
- 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.
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.
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.
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 →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.