SDLT nil-rate bands and FTBR thresholds reverted to pre-September 2022 levels

Stamp duty land tax (SDLT) thresholds in England and Northern Ireland reverted to their pre-September 2022 levels on 1 April 2025. The SDLT (Temporary Relief) Act 2023 legislated that the nil-rate band, the First Time Buyers' Relief (FTBR) nil-rate band and the FTBR purchase price limit would all revert to £125,000, £300,000 and £500,000 respectively from that date¹. The temporary relief had applied to purchases with an effective date between 23 September 2022 and 31 March 2025².

The temporary measure, introduced under the government led by Liz Truss, had raised the standard residential nil-rate threshold from £125,000 to £250,000, the FTBR nil-rate threshold from £300,000 to £425,000, and the maximum purchase price for FTBR eligibility from £500,000 to £625,000². Its stated purpose was to support the property market, homeownership and mobility in the housing market².

SDLT is paid on property or land purchases in England and Northern Ireland, and the tax due depends on the purchase price, with rates and thresholds differing by property type or whether the property is an additional dwelling¹. As of 1 April 2025 the SDLT threshold is £125,000 for residential properties and £150,000 for non-residential properties¹. Residential properties under £125,000 may still be liable to SDLT if subject to the higher rates for additional dwellings (HRAD) or the non-resident surcharge¹.

Analysis published by the Tax Policy Associates think tank in June 2026 said the change added £2,500 of tax for most standard buyers above £250,000, that a £425,000 first-time buyer purchase went from zero SDLT to £6,250, and that a £625,000 first-time buyer purchase lost relief entirely, with SDLT rising from £10,000 to £21,250³. The Office for Budget Responsibility's certified costing assumed ending the temporary thresholds on 31 March 2025 would raise £850m in 2025-26, £1.44bn in 2026-27 and £1.635bn in 2027-28³.

HMRC's quarterly statistics, published 19 December 2025, recorded total SDLT transactions in Q1 2025 (January to March) 42% higher than in Q1 2024, which it attributed to residential transactions being brought forward before the threshold changes effective from 1 April 2025¹. FTBR claims rose 11% between Q4 2024 and Q1 2025, from 41,700 to 46,100, and were 84% higher than Q1 2024, which HMRC also linked to transactions being brought forward ahead of the reduction in the nil-rate band and upper limit relief thresholds¹. Total net SDLT receipts rose 20% and transactions 19% across 2024 to 2025 compared with 2023 to 2024¹.

Separately, the HRAD surcharge increased from 3% to 5% from 31 October 2024, announced at Autumn Budget 2024¹. A 2% surcharge applies to residential purchases by non-residents, introduced on 1 April 2021¹.

Why it matters for households

Anyone buying residential property in England and Northern Ireland with an effective date on or after 1 April 2025 pays SDLT from a lower starting point than buyers in the preceding two and a half years. For a standard purchase, the first £125,000 of the price is charged at 0% rather than the first £250,000¹. First-time buyers claiming relief see the zero-rate band fall from £425,000 to £300,000, and relief is no longer available at all where the purchase price exceeds £500,000, down from £625,000¹.

The change does not apply across the UK. Scotland operates Land and Buildings Transaction Tax, where first-time buyer relief exempts the first £175,000 of the purchase price, a maximum reduction of £600, unchanged since the relief was introduced in 2018⁴. Wales does not have a first-time buyer relief and instead sets its general residential nil-rate band at £225,000⁴. Scotland's first-time buyer relief and the temporary UK enhancements are separate systems, and the Scottish Government's review, published 25 March 2026, noted that the UK's enhanced relief expired on 31 March 2025⁴.

Buyers who paid the higher rates on an additional dwelling and later sold a previous main residence may be able to reclaim the higher rates after the three-year window, and HMRC notes that repayments of HRAD are available to an individual who has sold their previous main residence within 36 months of paying HRAD¹.

What happens next

The reversion was legislated in advance and took effect on 1 April 2025¹. No further change to these thresholds has been reported. The Tax Policy Associates analysis, published 9 June 2026, projected a long-run fall of roughly 25,000 to 30,000 residential transactions a year in England once the pre-deadline spike and its payback have passed, based on OBR steady-state elasticities³. The Housing select committee has said stamp duty does economic damage and should be reformed³.