Published: March 2025

Stamp Duty Land Tax (SDLT) is about to change significantly in April 2025, with implications for homebuyers, landlords, investors, and property developers across the UK. Whether you're expanding a portfolio or buying your first home, it’s crucial to understand how these changes could impact your financial planning.

At Taxpertise Ltd, we break down complex tax updates into clear guidance—so here’s everything you need to know about what’s coming and how to prepare.

🔍 Key SDLT Changes Effective from April 2025

1. Return of the Lower Basic Threshold

• The 0% SDLT threshold will reduce from £250,000 back to £125,000, reversing the temporary uplift introduced to support buyers during the cost-of-living crisis.
  
• This means most buyers will pay more SDLT on purchases above £125,000 from April onwards.
  

✅ Tip: If you're mid-purchase, aim to complete before 6 April 2025 to potentially save thousands in SDLT.

2. Tighter Rules for First-Time Buyers

• Relief will still apply for first-time buyers, but now only on homes priced up to £425,000.
  
• Relief will taper off between £425,001 and £500,000. Properties priced over £500,000 will not qualify for any relief.
  

🏡 In high-cost areas like London and the South East, this change could mean higher upfront costs for first-time buyers.

3. 5% Surcharge for Additional Properties

• The surcharge on second homes and buy-to-let properties is increasing from 3% to 5%.
  
• This applies on top of standard SDLT rates and will affect landlords, holiday homes, and company purchases.
  

📌 Impact: The SDLT bill on a £300,000 buy-to-let will rise by £6,000 under the new rules.

4. New Reliefs for Regeneration & Energy Retrofits

• A new relief will apply to properties purchased for urban regeneration or significant energy-efficiency upgrades.
  
• Buyers may receive up to 50% off SDLT if certain criteria are met—this incentive is available until March 2028.
  

🛠️ Designed to support the levelling-up agenda, this could benefit developers and investors targeting vacant or low-efficiency properties.

🧾 What Do These Changes Mean for You?

Buyer Type Summary of Impact First-Time Buyers Reduced relief threshold—fewer properties will qualify. Home Movers SDLT now payable above £125,000, increasing transaction costs. Landlords/Investors 5% surcharge makes additional property purchases more expensive. Developers New reliefs offer incentives for regeneration and retrofits.

📈 Strategic Actions to Consider

With these changes on the horizon, property buyers and investors should take time to:

• Fast-track completions before 6 April 2025 to lock in current rates.
  
• Re-calculate SDLT liabilities on upcoming purchases.
  
• Review investment strategies in light of increased surcharges.
  
• Explore eligibility for regeneration or energy-efficiency SDLT reliefs.
  

💼 How Taxpertise Ltd Can Help

We support property investors, developers, and homeowners with:

✅ SDLT planning and mitigation strategies
✅ Buy-to-let and portfolio structuring
✅ Energy retrofit and regeneration project tax advice
✅ Guidance on relief eligibility and compliance

📅 Book Your SDLT Planning Session Now
Let’s make sure your property plans are tax-efficient ahead of the changes.

🔗 www.taxpertise..uk | ✉️ grace@taxpertise.co.uk

This article is intended for general information only and does not constitute financial or tax advice. Always seek tailored guidance from a qualified professional.