# Changes to Stamp Duty Land Tax 2025 - What does this mean for you?

Posted 29/11/2024 by [Reeds Rains ](/blog/authors/marketing-team)

Stamp Duty Land Tax Changes are coming in April 2025, potentially costing homebuyers even more money. Find out how these changes impact first-time buyers, investors, home movers and landlords looking to grow their portfolio after 31 March 2025.

   ![Blue door](https://www.reedsrains.co.uk/uploads/blog_post/12_1117_s.jpg?v=165784) Stamp Duty rules are changing in April 2025 in England and Northern Ireland, potentially costing first-time buyers, home movers, and investors/owners of more than one property thousands of pounds.

However, you can avoid these added costs by moving into your new home or completing a new purchase before March 31, 2025.

[Try our Stamp Duty Calculator to see how much you will pay today](/page/996)

## What is Stamp Duty?

- [Stamp Duty Land Tax](/page/996) (SDLT) is a mandatory tax that is applied when purchasing a property or land in England and Northern Ireland
- [Land Transaction Tax](/page/997) (LTT) is a mandatory tax applied when purchasing a property or land in Wales

To provide certainty to taxpayers, Land Transaction Tax (LTT) rates and bands remain under review, with no changes currently proposed.

## How much will I pay as a first-time buyer?

Right now, first-time buyers in England and Northern Ireland don’t pay any stamp duty on homes priced up to £425,000. Starting next April, homes between £300,001 and £500,000 will incur a 5% stamp duty rate.

For example:

- Purchase price: £350,000
- Current Stamp Duty for first-time buyers: £0
- From April 1, 2025: £2,500

From April 1, 2025, the 5% is applied to the £50,000 that is over the starting point of £300,001.

In Wales, unlike in England, there are no LTT reliefs, exemptions, or special provisions for first-time buyers, whether purchasing a primary residence or a buy-to-let property. However, most first-time buyer properties in Wales fall within or near the zero-rate threshold of £225,000.

First-time buyers pay no stamp duty on the first £225,000, then it’s 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1.5 million, and 12% above £1.5 million.

For example:
• Purchase price: £350,000
• Stamp Duty for first-time buyers: £7,500

Whilst (LTT) remains under review, the 6% is applied to houses £225,000 up to £400,000 (= £7,500). Total £7,500.

## How will the changes affect buying and selling your main home?

Right now, home movers don’t pay any stamp duty on homes priced up to £250,000. Starting next April, homes between £125,001 and £250,000 will incur a 2% stamp duty rate.

For example:

- Purchase price: £350,000
- Current stamp duty for home movers: £5,000
- From April 1, 2025: £7,500

From April 1, 2025, the 2% is applied to houses £125,000 up to £250,000 (= £2,500), and then you add a further 5% to go above £250,000 up to £925,000 (= £5,000). Total £7,500.

Home movers in Wales pay no stamp duty on the first £225,000, then it’s 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1.5 million, and 12% above £1.5 million.

For example:
• Purchase price: £350,000
• Stamp Duty for first-time buyers: £7,500

Whilst (LTT) remains under review, the 6% is applied to houses £225,000 up to £400,000 (= £7,500). Total £7,500.

## How will the changes impact investors or owners of more than one property?

Right now, investors or purchasers who own more than one property pay 5% stamp duty on homes priced from £0 to £250,000. Starting next April, homes between £0 and £125,000 will incur a 5% stamp duty rate.

For example:

- Purchase price: £350,000
- Current Stamp Duty for investors, owners of more than one property: £22,500
- From April 1, 2025: £25,000

From April 1, 2025, the 5% is applied to houses up to £125,000 (= £6,250), and then you add a further 7% to go above £125,000 up to £250,000 (= £8,750), adding an additional 10% to go above £250,000 and up to £925,000 (= £10,000). Total £25,000

Whilst LTT in Wales remains under review, investors or owners of more than one property pay 4% stamp duty on the first £180,000, then it’s 7.5% on £180,001 to £250,000, 9% on £250,001 to £400,000, 11.5% on £400,001 to £750,000, and 14% above £750,000 up to and including £1,500,000, and 16% over £1,500,000.

For example:
• Purchase price: £350,000
• Stamp Duty for investors, owners of more than one property: £21,450

Whilst (LTT) remains under review, the 4% is applied to houses up to £180,000 (= £7,200), and then you add a further 7.5% to go above £180,001 up to £250,000 (= £5,250), and then 9% from £250,001 to £400,000 (= £9,000). Total: £21,450.

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You can avoid these added costs by moving into your new home or completing a new purchase before March 31, 2025.

To get started, book a no obligation property valuation for free. Our local sales experts will estimate the value of your home and answer any of your questions.

[Book a no obligation property valuation](/page/1003)

[Reeds Rains ](/blog/authors/marketing-team)

The Reeds Rains Content Marketing Team