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The UK property tax system is evolving in 2025, and these changes could significantly impact landlords, property investors, and homebuyers. Whether you are managing a property portfolio or planning your next move, understanding these updates is key to protecting your financial interests. Here's a simple breakdown of what’s changing and how you can prepare.
 

Stamp Duty Land Tax (SDLT): What’s New?

Starting April 1, 2025, the thresholds for Stamp Duty Land Tax (SDLT) will revert to their pre-2020 levels, meaning:
 

• First-Time Buyers: The tax-free threshold will decrease from £425,000 to £300,000. Consequently, purchasing a property priced at £450,000 after this date will result in a £7,500 SDLT liability, whereas it was previously exempt.
   
• Home Movers: The SDLT exemption threshold will be reduced from £250,000 to £125,000. For instance, buying a property for £295,000 will incur an SDLT of £4,750, calculated as follows:
   
  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the remaining £45,000 = £2,250
  • Total SDLT = £4,750

This change is expected to affect thousands of buyers, particularly in areas like London and the South East, where property prices are higher.


Not sure how SDLT applies to you? Speak to our property tax accountants today to ensure you're not overpaying or missing out on potential reliefs.

Capital Gains Tax (CGT): A Closer Look.

While there are no confirmed rate changes for Capital Gains Tax in 2025, property owners selling UK residential property should stay alert. Taxable gains on sales can significantly impact your profits, and planning ahead can help minimise liabilities.
 

Tip: Working with a property tax specialist can help you identify reliefs and exemptions, ensuring you pay only what’s necessary.

Inheritance Tax (IHT): Frozen Thresholds Could Cost You

Inheritance Tax thresholds remain frozen until 2030:
 

• Main IHT threshold: £325,000.
• Residence nil-rate band: £175,000 (for passing on property to direct descendants).
  
   

Although these thresholds remain unchanged, rising property values and inflation have steadily pushed more estates above the taxable limit, increasing the need for proactive property tax planning. Proactive tax planning is crucial to safeguard your assets for future generations.
 

Call our property tax specialists today for a tailored inheritance tax plan to protect your estate, minimise tax liabilities, and secure your family’s future!

Why You Need Expert Help Now

Navigating property tax changes can feel overwhelming, especially with the added complexities of SDLT, CGT, and IHT. That’s where Doshi Accountants can make a difference.
 

How we can help:

• Simplify your SDLT calculations and identify potential savings.

• Create a CGT strategy to protect your profits when selling property.

• Provide guidance on inheritance tax to secure your legacy.
  
  

Our team of property tax accountants has over 20 years of experience working with landlords, property developers, and investors. We are here to make tax compliance straightforward and ensure you make the most of your investments.
 

Don’t Let Tax Changes Catch You Off Guard

The sooner you act, the better prepared you will be for these 2025 changes. Reach out to our team for personalised advice.

📞 Call us at 020-8239-4999 or 📧 Email us at dhruv@doshiaccountants.co.uk for quick help.

Stay ahead of the curve—speak to a property tax expert today!

Latest UK Property Tax Update Checked October 2025

If you are buying, selling or planning property matters in 2025 it helps to know the current rules. This guide covers Stamp Duty Land Tax, Capital Gains Tax and Inheritance Tax with worked examples and key questions answered.

Stamp Duty Land Tax (SDLT) in England and Northern Ireland

Main residence rates

• 0% up to £125,000
• 2% on £125,001 to £250,000
• 5% on £250,001 to £925,000
• 10% on £925,001 to £1,500,000
• 12% above £1,500,000

First time buyer relief

• 0% up to £300,000
• 5% on £300,001 to £500,000
• No relief above £500,000

Additional properties

The higher rate surcharge is added on top of the main bands.

Capital Gains Tax 2025 to 2026

• The annual exempt amount is £3,000 so more disposals are now taxable.
   
• Residential gains are taxed at the basic rate within the band and at a reduced higher rate above that band.
   
• UK residential property disposals must usually be reported and paid within 60 days.

Inheritance Tax

• Nil rate band remains £325,000.
   
• Residence nil rate band remains £175,000 where conditions are met.
   
• Thresholds are frozen which means exposure increases as property values rise.

Worked SDLT Examples

Main home at £295,000

• 0% on £125,000 = £0 
• 2% on £125,000 = £2,500 
• 5% on £45,000 = £2,250 
• Total SDLT = £4,750

First time buyer at £450,000

• 0% on £300,000 = £0 
• 5% on £150,000 = £7,500 
• Total SDLT = £7,500 subject to eligibility

Buy to let at £300,000

• Apply the main bands to £300,000
   
• Add the higher rate surcharge across each band

👉 Your numbers may look different. Contact our SDLT team to confirm your exact liability before exchange.

SDLT Comparison Table
 

Property Tax FAQs 2025

What is the stamp duty on a £450,000 house in 2025
First time buyers pay £7,500. Other buyers pay £10,000 plus surcharge if it applies.

Are inheritance tax thresholds still frozen
Yes. The £325,000 nil rate band and the £175,000 residence nil rate band remain unchanged.

Do Scotland and Wales use different property taxes
Yes. Scotland uses LBTT and Wales uses LTT.


Do non UK residents face extra charges
Yes. A non resident surcharge can apply and may combine with the higher rate for additional properties.
 

Next Steps

For tailored advice on SDLT, CGT or inheritance tax you can book a consultation with our property tax specialists today.

📞 Call us at 020-8239-4999 or 📧 Email us at dhruv@doshiaccountants.co.uk If you have any query.