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From 1 April 2025, the thresholds and rates for Stamp Duty Land Tax in England and Northern Ireland are set to change - impacting first-time buyers, homeowners, property investors, and commercial buyers alike.

As process agents, Point Processing plays a vital role in ensuring that cross-border property transactions run smoothly. So it’s essential that our clients - and their legal and financial advisors - understand the upcoming changes, especially when time-sensitive transactions are involved.

Here’s a breakdown of what’s changing, who it affects, and how you can prepare.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax is payable when you purchase land or property in England or Northern Ireland. It applies to:

• Freehold purchases
• Leasehold purchases (new or existing)
• Shared ownership scheme purchases
• Property transfers involving consideration (such as taking on a mortgage)

What's changing from 1st April 2025?

Lower thresholds for Stamp Duty Land Tax

The Stamp Duty Land Tax-free thresholds are reducing, which means more buyers will begin paying tax at lower purchase prices.

Revised Stamp Duty Land Tax rates

For residential properties, the tiered Stamp Duty Land Tax rates are changing significantly. Here’s a quick comparison:

Before 1st April 2025

• 0% on first £250,000
• 5% on £250,001 to £925,500
• 10 % on £925,501 to £1.5 million
• 12% on £1.5 million and above

From 1st April 2025

• 0% on first £125,000
• 2% on £125,00 to £250,000
• 5% on £250,001 to £925,000
• 10% on £925,501 to £1.5 million
• 12% on £1.5 million and above

Example

Buy a home for £295,000

• Before April 2025: £2,250 Stamp Duty
• From April 2025: £4,750 Stamp Duty

That's £2,500 more just for completing a few days later.

Leasehold properties and commercial purchases

If you’re buying a new leasehold (residential or commercial), Stamp Duty Land Tax is due on both the lease premium and, in some cases, the net present value of the rent.

From April 2025:

• The nest present value threshold for residential leaseholds drops from £250,000 to £125,000.
• Stamp Duty land Tax on rent starts sooner for leaseholds.

Commercial buyers are not affected by changes in the basic threshold (£150,000 remains), but the cumulative impact on mixed-use properties and portfolio purchases should not be overlooked.

Higher rates still apply in special cases

These existing rules remain unchanged, but are worth remembering:

• +5% surcharge if buying an additional residential property
• +2% surcharge for non-UK residents
• Special rules for companies, trusts, linked transactions, and bulk purchases of 6 or more residential properties

Why this matters and how a process agent can help

As cross-border deals often involve tight timelines, international buyers should be especially aware of the April 1st cut-off. Delays in execution - whether from missing documents, overseas signatories, or regulatory bottlenecks - can push completions beyond the deadline and result in significant unexpected costs. That’s where we come in.

At Point Processing, we act as reliable UK-based process agents to facilitate smoother, compliant transactions. Our presence can be the difference between meeting a deadline - or paying thousands more in Stamp Duty Land Tax.