From 1st April 2025, new Stamp Duty Land Tax (SDLT) rules will come into effect, directly impacting first time buyers. As part of the changes, the nil-rate band for First Time Buyer Relief will be reduced from £425,000 to £300,000. This means that from April 2025 first time buyers purchasing properties above £300,000 will face additional SDLT costs.
Key changes under the new rules:
- No SDLT will be payable on properties costing up to £300,000.
- A 5% SDLT rate will apply to the portion of the purchase price between £300,001 and £500,000.
- Properties over £500,000 will no longer qualify for First Time Buyer Relief, with standard SDLT rates applying instead.
For example, if you’re purchasing a property for £350,000 after April 2025, you’ll now pay £2,500 in SDLT. Whereas, under the current rules, you wouldn’t pay any SDLT at all.
How We Can Help
These changes could significantly increase the upfront costs for first time buyers, making it more important than ever to plan ahead. Navigating these changes can feel daunting, but our conveyancing team is here to guide you through every step of the process. We’ll help you understand how these changes may affect your purchase.
If you’re planning to buy your first home and need legal advice or assistance with your property transaction, get in touch with us today. Call 01425 610078 / 01590 689500 or email conveyancing@heppenstalls.co.uk to speak to one of our friendly team members.