Heard about the 2025 changes to Stamp Duty Land Tax (SDLT) but don’t know what they mean for you? In this blog, we’re delving into the upcoming rate amendments, including what they are and how to navigate them as a first-time buyer.
Why is SDLT Changing?
When the Labour government delivered its first budget in 14 years on 30th October 2024, one of the major announcements impacting homebuyers was the changes to stamp duty. This transaction tax is payable on residential property purchases over a certain price in England.
Since October 2022, the thresholds at which SDLT applies have been temporarily frozen at higher levels, a measure introduced by the previous government to stimulate the post-pandemic property market. However, the tax thresholds are changing from 1st April 2025, reverting to their pre-pandemic levels and increasing the homeownership expenses of many prospective buyers.
Learn more about the upcoming property tax adjustments and what they mean for you below.
The Impact of SDLT Changes on First-Time Buyers
As a first-time buyer, you can claim SDLT discount. How much discount you can claim depends on the property price and when you purchase it.
Discount up to 31st March 2025
- No SDLT up to £425,000
- 5% SDLT on the portion from £425,001 to £625,000
- If the price is over £625,000, you cannot claim the relief
For example, if you’re a first-time buyer purchasing a home worth £500,000, the SDLT would be calculated as follows:
- 0% up to £425,000
- 5% on the remaining £75,000 = £3,750
Discount from 1st April 2025
- No SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
- If the price is over £500,000, you cannot claim the relief
For example, if you’re a first-time buyer purchasing a home worth £500,000, the SDLT would be calculated as follows:
- 0% up to £300,000
- 5% on the remaining £200,000 = £10,000
You can find comprehensive information about paying SDLT on Shared Ownership homes on the UK government website. Additionally, the SDLT calculator can work out how much property tax you’ll have to pay. We recommend speaking to your solicitor to understand the SDLT implications on your Shared Ownership home purchase.
Are you a first-time buyer wanting to purchase a home in London? Shared Ownership with Newlon Living could be the perfect solution. Browse our available apartments for sale to find your dream home and learn more about applying for Shared Ownership with this guide to navigating the application.
