The rules in force from September 2022 until 31 March 2025 had been kind. The standard nil-rate threshold sat at £250,000, first-time buyers paid no stamp duty up to £425,000, and the FTB relief tapered out at £625,000. On 1 April 2025, all three of those generous figures fell — and they fell sharply. The change was scheduled by primary legislation passed in 2023; it did not require any new Budget to take effect. It simply happened, by sunset clause, while the country's political attention was elsewhere.
The rules before 1 April 2025
For standard purchases of a sole or main residence: 0% on the first £250,000, 5% on the slice from £250,001 to £925,000, 10% from £925,001 to £1.5m, and 12% above. For first-time buyers: 0% on the first £425,000, 5% from £425,001 to £625,000, and no relief at all above £625,000. The additional-dwelling surcharge was 5% (raised from 3% in the October 2024 Autumn Budget).
What changed on 1 April 2025
Standard rates: the nil-rate threshold dropped from £250,000 to £125,000. A new 2% band was reintroduced from £125,001 to £250,000. Bands above £250,000 were unchanged. First-time buyers: nil-rate threshold fell from £425,000 to £300,000; relief cap fell from £625,000 to £500,000. The additional-dwelling surcharge stayed at 5%.
Standard rates from 1 April 2025
£0–£125,000: 0%
£125,001–£250,000: 2%
£250,001–£925,000: 5%
£925,001–£1,500,000: 10%
Above £1,500,000: 12%
Worked examples — pre and post April 2025
A £200,000 standard purchase. Pre-April: £0 SDLT (within the nil-rate band). Post-April: £1,500 (2% on the £75,000 slice between £125k and £200k). Cost: £1,500 more.
A £300,000 standard purchase. Pre-April: £2,500 (5% on £50,000). Post-April: £5,000 (£2,500 on the 2% slice + £2,500 on the 5% slice). Cost: £2,500 more.
A £400,000 first-time buyer purchase. Pre-April: £0 (within FTB relief). Post-April: £5,000 (5% on the £100,000 between £300k and £400k). Cost: £5,000 more.
A £500,000 first-time buyer purchase. Pre-April: £3,750 (5% on £75,000 above the £425k threshold). Post-April: £10,000 (FTB relief lapses completely; treated as standard). Cost: £6,250 more.
A £600,000 standard purchase. Pre-April: £17,500. Post-April: £20,000. Cost: £2,500 more.
Who got caught out
The buyers most damaged were those mid-purchase in early 2025. A typical English property transaction takes 12 to 16 weeks from offer to completion. Buyers who agreed sales in December 2024 or January 2025 expected to complete before 31 March — and many didn't. Conveyancing delays, mortgage issues, chain breaks, and surveying problems all conspired to push thousands of completions into early April. Each missed deadline cost between £1,500 and £6,250 depending on price and FTB status.
First-time buyers at £400,000–£500,000 were particularly hard hit. Many had agreed on the basis of zero SDLT and suddenly faced £5,000–£10,000 of unbudgeted tax at the moment of completion. Some pulled out; many borrowed more or asked family for help.
Is there any recourse?
Unfortunately not. SDLT is calculated on the rates in force on the date of completion (the "effective date"), not the date of exchange or the date of offer. There is no statutory grace period for buyers who completed just after a rate rise. The only avenue for some buyers is to check whether any chattels (carpets, white goods, freestanding furniture) included in the sale should have been deducted from the purchase price first — that can sometimes recover £1,000 to £3,000.
For deeper context, see our piece on Labour's broader SDLT approach and our specific first-time buyer guide for 2025.
Lesson for future buyers
SDLT thresholds are not permanent. Always check the band table for your expected completion date — and add a buffer in case completion slips past a cliff edge. Build the higher-rate scenario into your affordability plan.
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