How Stamp Duty Tax on a £500k Property Changed Over Time
| Time Period | Policy Name | Nil-Rate Threshold | Tax on £500,000 | FTB on £500,000 |
|---|---|---|---|---|
| July 2020 – June 2021 | COVID SDLT Holiday | £500,000 | £0 | £0 |
| July 2021 – Sept 2021 | Tapered Holiday | £250,000 | £12,500 | £10,000 |
| Oct 2021 – Sept 2022 | Historical Baseline | £125,000 | £15,000 | £10,000 |
| Sept 2022 – March 2025 | Growth Plan (Mini-Budget) | £250,000 | £12,500 | £3,750 |
| 31 Oct 2024 | Autumn Budget 2024 | £250,000 | £12,500 | £3,750 (+5% BTL) |
| April 2025 – Present (2026/27) | Statutory Reversion | £125,000 | £15,000 | £10,000 |
8 July 2020 – 30 June 2021
The COVID-19 Stamp Duty Holiday
Chancellor Rishi Sunak announced a temporary SDLT holiday in response to the pandemic, raising the residential nil-rate threshold from £125,000 to £500,000. Buyers saved up to £15,000, triggering an unprecedented surge in UK property transaction volumes.
1 July 2021 – 30 September 2021
The Tapered Transition Period
To avoid a severe cliff-edge in transaction completions, a tapered holiday took effect, stepping the nil-rate threshold down to £250,000 before returning to the original statutory baseline.
23 September 2022
The "Mini-Budget" Threshold Increases
Chancellor Kwasi Kwarteng announced permanent increases to the SDLT thresholds under the "Growth Plan": the standard residential nil-rate band doubled from £125,000 to £250,000, and First-Time Buyer Relief was raised from £300,000 to £425,000 (with property eligibility capped at £625,000).
17 November 2022
Autumn Statement: The 31 March 2025 Sunset Date
Chancellor Jeremy Hunt amended the legislation, transforming the "permanent" mini-budget cuts into a temporary relief measure that would sunset on 31 March 2025.
31 October 2024
Autumn Budget: Additional Property Surcharge Raised to 5%
Chancellor Rachel Reeves announced an immediate increase in the Higher Rates for Additional Dwellings (HRAD) from 3% to 5%. This applied to buy-to-let investments and second homes completing on or after 31 October 2024.
1 April 2025
The Reversion to Baseline Thresholds
The temporary cuts expired. The standard nil-rate threshold reverted to £125,000, and the First-Time Buyer nil-rate threshold reverted to £300,000 (with the maximum qualifying property price resetting to £500,000).
Present — 2026/27 Status Quo
Current Stable Regime & Devolved Divergence
The 2026/27 tax year operates under the unchanged April 2025 statutory thresholds. Property taxes in Scotland (LBTT, administered by Revenue Scotland with an 8% ADS) and Wales (LTT, administered by the Welsh Revenue Authority with a £225,000 nil-rate threshold) continue to operate under devolved legislation.