The Stamp Duty Deadline on 31st March is Fast Approaching

Are you aware of the upcoming Stamp Duty Land Tax (SDLT) deadline on 31st March, 2025? If you are planning to buy property in England or Northern Ireland in the future, you need to understand how this deadline could affect your finances. 

What is Stamp Duty Land Tax? 

Stamp Duty Land Tax (SDLT) is a tax you must pay when purchasing property or land over a certain value in England and Northern Ireland. 

The amount you pay depends on whether the property is residential, non-residential, or mixed-use, as well as your eligibility for reliefs or exemptions, such as first-time buyer status, purchasing an additional property, or non-UK residency.  You can view the details on the HMRC website.

What Are the Changes? 

In September 2022, the Government temporarily increased the 0% SDLT threshold for residential properties from £125,000 to £250,000 to support the housing market. However, this measure ends on March 31, 2025, with the threshold reverting to £125,000 on April 1, 2025. 

This means that buyers who complete their purchase after 31st March, 2025, could face significantly higher Stamp Duty Land Tax costs. 

How Much Will You Pay? 

Here’s how the SDLT rates compare before and after the deadline: 

Examples 

Example 1: Buying a £100,000 Property 

• Before April 1, 2025: £0 SDLT 

• After April 1, 2025: No change – still £0 

Example 2: Buying a £175,000 Property 

• Before April 1, 2025: £0 SDLT 

• After April 1, 2025: SDLT now at 2% = £3,500 

Example 3: Buying a £250,000 Property 

• Before April 1, 2025: £0 SDLT 

• After April 1, 2025: SDLT now at 5% = £12,500 

Example 2: Buying a £950,000 Property 

• Before April 1, 2025: SDLT at 10% over £925,000 = £95,000 

• After April 1, 2025: No change, SDLT still £95,000 

(If the purchase is for an additional property there is an extra 5% surcharge on top of the above rates.) 

First-Time Buyers: What You Need to Know 

The temporary increase in First-Time Buyers’ Relief also ends on March 31, 2025. This means: 

• The nil-rate threshold reverts from £425,000 to £300,000. 

• The maximum property value eligible for relief drops from £625,000 to £500,000. 

Key Considerations 

• Timely Completion: SDLT is determined by your completion date, not your purchase agreement. If you buy before 31st March, 2025, but complete after this date, the higher rates will apply. 

• Market Demand: As the deadline approaches, solicitors, lenders, and removal companies may experience delays.  

• Mortgage and Cost Considerations: With the cost-of-living crisis and rising mortgage rates, saving thousands in SDLT could make a significant financial difference. 

• Working with solicitors: It is worth talking through the conveyancing timeline with your solicitor and as everyone races to complete before the deadline it is important to keep in regular touch with your conveyancer. 

Expert Advice 

SDLT rules can be complex, and it’s a good idea to seek advice tailored to your situation. At KGJ, our financial advisers can explore your situation and offer guidance.