From 1 April 2025, stamp duty thresholds have reverted to their original levels after the temporary (almost) three-year threshold increase. Main residence and home buyer relief thresholds have decreased, accordingly. That means taxpayers at lower thresholds may now have to pay stamp duty tax, as opposed to last year.
Let’s compare previous and current UK stamp duty threshold and rates [applies in England and Northern Ireland].
New Stamp Duty Threshold UK [2025]
From 23 September 2022 to 31 March 2025, taxpayers below thresholds and first-time homebuyers enjoyed a higher threshold level for zero-rate stamp duty:
- £250,000 for standard (not first-time) homebuyers
- £425,000 for first time homebuyers
Pre-2022, they were £125,000 and £300,000, respectively. From 1 April 2025, these rates returned. That means in 2025:
- Standard main residence homebuyers see a decreased stamp duty threshold from £250,000 to £125,000.
- Above people will now pay 2% on property purchase between £125,000 and £250,000.
- First time homebuyers’ relief will now only qualify home purchases worth less than £500,000, which was previously £625,000.
- First time homebuyers also see a decreased threshold from £425,000 to £300,000.
- For the purchase price between £300,000 and £425,000, formerly qualifying first time buyers now pay 5%.
Anywhere above £125,000, if you do not qualify for the first-time homebuyers’ relief, you will now be taxed.
Additional properties surcharge (e.g., buy to let, second homes) also increased from 1 April. We discuss that more below.
If You Don’t Know Yet: Scotland and Wales do not use the same terminology (and rates) as England’s Stamp Duty Land Tax (SDLT). Scotland uses Land Buildings Transaction Tax (LBTT), whilst Wales has Land Transaction Tax (LTT).
We cover all of the above stamp duty taxes here: All You Need to Know About Stamp Duty Tax.
![New Stamp Duty Threshold UK [2025]](https://legendfinancial.co.uk/wp-content/uploads/2024/05/LF-Blog-45-CR250501LF-1024x590.webp)
Stamp Duty Threshold 2024 vs. 2025
Here are all the changes in detail, comparing thresholds and rates before and after 1 April.
Main Residence
| Purchase Price | Before 1 April 2025 | After 1 April 2025 |
|---|---|---|
Less than £125,000 |
0% |
0% |
£125,001 to £250,000 |
0% |
2% |
£250,001 to £925,000 |
5% |
5% |
£925,001 to £1.5 million |
10% |
10% |
£1.5 million and above |
12% |
12% |
With this decreased threshold to £125,000, more homebuyers are bound to get taxed at 2%.
First-Time Homebuyers
First-time homebuyers are not exempt from the changes, either. First off, the first-time homebuyers’ relief was reduced from £625,000 to £500,000. Be sure to keep that in mind.
Here’s another comparison before and after 1 April:
| Purchase Price | Before 1 April 2025 | After 1 April 2025 |
|---|---|---|
Less than £300,000 |
0% |
0% |
£300,001 to £425,000 |
0% |
5% |
£425,001 to £500,000 |
5% |
5% |
Any residential property bought above £500,000 will follow the standard main residence rates (refer above).
Check out our guide to first-time buyer stamp duty relief for more information about eligibility, how the relief works, shared-ownership conditions, and more.
Additional Property
Aside from the thresholds decrease, additional property tax rates on stamp duty also changed. Stamp duty is now taxed at 7% on property purchases above the current standard threshold, £125,000. This applies to buy-to-let, second homes, mixed-use, or other non-residential properties.
| Purchase Price | Before 1 April 2025 | After 1 April 2025 |
|---|---|---|
Less than £125,000 |
5% |
5% |
£125,001 to £250,000 |
5% |
7% |
£250,001 to £925,000 |
10% |
10% |
Check out Stamp Duty Land Tax Calculator UK for further guidance on non-residential property stamp duty rates and to get a rough calculation of your tax on property.
Stamp Duty Reliefs or Exemptions
Aside from the first-time buyer relief, the UK government offers other stamp duty reliefs and exemptions to help people up the property ladder. Reliefs may apply to other circumstances, such as the following:
- Multiple dwelling
- Companies buying individuals’ homes
- Employers purchasing employees’ houses
- Crown employees
- Local authorities’ acquisitions
- Registered social housing providers
- Charities purchasing for charitable purposes
- Individuals exercising the right to buy properties
- Property developers supplying amenities to communities
- Companies transferring properties to other companies
- Property investment funds such as Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs)
Stamp duty returns must be filed to HMRC with or without stamp duty tax to pay.
FAQs on Stamp Duty
Who is exempt from stamp duty?
You may be eligible to stamp duty exemption if you made no exchange of money or other payments for a land or property transfer, when you inherit a property through a will, or when the property is transferred to you due to divorce or dissolution of a civil partnership. Verify with your tax advisor first.
Is it a good time to buy a house in the UK?
With the first-time homebuyers’ relief eligibility changing from £625,000 to £500,000, it becomes even more challenging to own a house. Be sure to discuss your plans with a tax and financial advisor first before making major moves.
How to avoid stamp duty on commercial leases in the UK?
Individuals are exempt from paying SDLT if they receive a commercial property lease lasting over seven years, provided that the premium is below £40,000 and the annual rent is less than £1,000. Additional exemptions for SDLT on commercial leases include leasebacks and extensions.
How will the stamp duty changes impact buying and selling your primary home?
Before the changes on 1 April 2025, you will have no stamp duty to pay on your property purchased at less than £250,000. From now onwards, you are taxed at 2% if your property costs over £125,000.
How will the stamp duty changes affect investors or owners of multiple properties?
From 1 April 2025, you will be taxed at 5% for the first £125,000 of your property’s present value.
Tax Planning with Legend Financial
Minimising stamp duty is possible with proactive planning. Staying within the stamp duty threshold is one way to curb tax, but this is not applicable all the time. Legend Financial will walk you through reliefs and exemptions that you may be eligible for. Our goal is to help you make the most tax-efficient decisions.
We have been in the industry for over ten years and have served all kinds of clients and tax situations. From tax planning to filing your returns, you can trust our experts. Reach us today!
