Change of stamp duty | Stamp duty changes 2025
On 1st April 2025, significant stamp duty changes came into effect. The thresholds for Stamp Duty Land Tax (SDLT) in England and Northern Ireland have been adjusted. These stamp duty changes impact homebuyers across various segments of the market – from first time buyers to second steppers and property investors.
As a result of the change of stamp duty, home movers now face paying a higher amount of stamp duty, when buying their next home.
Stamp duty changes 2025
Stamp Duty Land Tax (SDLT) is typically paid on increasing portions of the property price when you buy a residential property. Up until 31st March 2025, the Government had introduced a temporary, nil rate tax threshold for the first £250,000 of the purchase price of your next home. However, from 1st April 2025, this nil rate tax threshold has been returned to its previous, lower level of £125,000.
From 1st April 2025:
- The nil rate threshold, which was previously £250,000 returned to the previous level of £125,000.
- The nil rate threshold for first-time buyers, which was previously £425,000 returned to the previous level of £300,000.
- The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) could be claimed returned from £625,000 to the previous level of £500,000.
Why has stamp duty changed?
In September 2022, the Government (then Conservative ) announced a temporary change to stamp duty. They lowered the upfront costs of moving home. This measure was initially announced as a permanent change. However, in the Autumn Statement (2022), the Government announced that the increase in the residential nil-rate threshold would end on 31st March 2025.
Stamp Duty Rates up to 31st March 2025
- Property land value up to £250,000 : SDLT = 0%
- Property land value from £250,001 to £925,000: SDLT = 5%
- Property land value from £925,001 to £1.5 million: SDLT = 10%
- Property land value over £1.5 million: SDLT = 12%
Stamp Duty Rates from 1st April 2025
- Property land value up to £125,000: SDLT = 0%
- Property land value from £125,001 to £250,000: SDLT = 2%
- Property land value from £250,0001 to £925,000: SDLT = 5%
- Property land value from £925,001 to £1.5 million: SDLT = 10%
- Property land value over £1.5 million: SDLT = 12%
Avoid the impact of recent stamp duty changes at Burnham Waters
To support our home buyers and to help mitigate the impact of the recent stamp duty increase, the team at Burnham Waters has launched its ‘stamp duty saver’* incentive. The incentive will see Burnham Waters offer to pay the difference, so that purchases are not negatively impacted by the recent changes. For a limited time, purchasers reserving a new retirement bungalow at Burnham Waters in Essex, will not incur any additional stamp duty costs – instead, these additional costs will be covered by Burnham Waters itself*.
The Burnham Waters Stamp Duty Saver*
The Burnham Waters Stamp Duty Saver is designed to mitigate the increased stamp duty costs for its home buyers.
For example, if you purchase a property for £400,000 after 1st April 2025, the SDLT calculation would be:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 (£125,001 to £250,000) = £2,500
- 5% on the remaining £150,000 (£250,001 to £295,000) = £7,500
Total SDLT: £10,000
If you had purchased this same property prior to 1st April 2025, the SDLT calculation would have been:
- 0% on the first £250,000 = £0
- 5% on the final £150,000 = £7,500
Total SDLT: £7,500
The above calculations show that on a property value of £400,000, a purchaser will now be paying an additional £2,500 in SDLT. Burnham Waters is offering to cover this additional cost (£2,500) for purchasers - for a limited time.*
Impact on First-Time Buyers
First-time buyers are one of the groups that are most impacted by the recent stamp duty changes. Prior to 1st April 2025 they did not have to pay any SDLT on properties up to £425,000 and 5% on the portion between £425,001 and £625,000. From 1st April 2025, these thresholds have been adjusted:
- Up to £300,000: 0%
- £300,001 to £500,000: 5%
Purchases exceeding £500,000 will not qualify for first-time buyer relief and will be subject to standard rates. For instance, a first-time buyer purchasing a property for £500,000 after 1st April 2025, will incur SDLT of £10,000, calculated as:
- 0% on the first £300,000 = £0
- 5% on the remaining £200,000 = £10,000
Additional Properties and Second Homes
Buyers acquiring additional properties, such as second homes or buy-to-let investments, will continue to pay a 3% surcharge on top of the standard SDLT rates. This means that from 1st April 2025, the SDLT rates for additional properties will be:
- Up to £125,000: 3%
- £125,001 to £250,000: 5%
- £250,001 to £925,000: 8%
- £925,001 to £1.5 million: 13%
- Above £1.5 million: 15%
Explore the New Homes at Burnham Waters
Located in Burnham-on-Crouch, Burnham Waters is a new lifestyle village for the over 55s, comprising a collection of one, two and three-bedroom retirement bungalows – the first of which are now ready to move in to!
In addition to a collection of new homes, the new village will offer residents access to a host of leisure facilities and amenities, to support an active lifestyle. From an on-site fitness suite, swimming pool and tennis court to a medical centre, shops, cafes and more, there will be plenty on offer.
Explore the amenities on offer at Burnham Waters here.
Explore the lifestyle facilities on offer at Burnham Waters here.
The Burnham Waters marketing suite is open daily, 10am – 3pm. There are show homes available to view and we have homes ready to move in to.
For more information or to book an appointment to visit, call the sales team on 01621 861 559 or email: info@burnhamwaters.co.uk
This information has been provided as guidance only and was correct at the time of publication. For a full explanation and further information, visit the Government’s webpage on Stamp Duty.
