diff --git a/app/models/sales_log.rb b/app/models/sales_log.rb
index 3e15c832d..dae70c729 100644
--- a/app/models/sales_log.rb
+++ b/app/models/sales_log.rb
@@ -485,4 +485,10 @@ class SalesLog < Log
   def is_staircase?
     staircase == 1
   end
+
+  def discount_value
+    return unless discount && value
+
+    value * discount / 100
+  end
 end
diff --git a/app/models/validations/sales/sale_information_validations.rb b/app/models/validations/sales/sale_information_validations.rb
index 17fbc95b4..c2036227a 100644
--- a/app/models/validations/sales/sale_information_validations.rb
+++ b/app/models/validations/sales/sale_information_validations.rb
@@ -83,4 +83,19 @@ module Validations::Sales::SaleInformationValidations
       record.errors.add :type, I18n.t("validations.sale_information.stairbought.over_max", max_stairbought:, type: record.form.get_question("type", record).answer_label(record))
     end
   end
+
+  def validate_discount_and_value(record)
+    return unless record.saledate && record.form.start_year_after_2024?
+    return unless record.discount && record.value && record.la
+
+    if record.london_property? && record.discount_value > 136_400
+      %i[discount value la postcode_full uprn].each do |field|
+        record.errors.add field, I18n.t("validations.sale_information.value.over_discounted_london_max", discount_value: record.field_formatted_as_currency("discount_value"))
+      end
+    elsif record.property_not_in_london? && record.discount_value > 102_400
+      %i[discount value la postcode_full uprn].each do |field|
+        record.errors.add field, I18n.t("validations.sale_information.value.over_discounted_max", discount_value: record.field_formatted_as_currency("discount_value"))
+      end
+    end
+  end
 end
diff --git a/config/locales/en.yml b/config/locales/en.yml
index c7d8c9da2..cd2f373ec 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -619,6 +619,9 @@ en:
         out_of_range: "Loan, grants or subsidies must be between £9,000 and £16,000"
       stairbought:
         over_max: "The percentage bought in this staircasing transaction cannot be higher than %{max_stairbought}% for %{type} sales."
+      value:
+        over_discounted_london_max: "The percentage discount multiplied by the purchase price is %{discount_value}. This figure should not be more than £136,400 for properties in London."
+        over_discounted_max: "The percentage discount multiplied by the purchase price is %{discount_value}. This figure should not be more than £102,400 for properties outside of London."
     merge_request:
       organisation_part_of_another_merge: "This organisation is part of another merge - select a different one"
       organisation_not_selected: "Select an organisation from the search list"
diff --git a/spec/models/validations/sales/sale_information_validations_spec.rb b/spec/models/validations/sales/sale_information_validations_spec.rb
index 25474e55b..24f2e22ee 100644
--- a/spec/models/validations/sales/sale_information_validations_spec.rb
+++ b/spec/models/validations/sales/sale_information_validations_spec.rb
@@ -608,4 +608,81 @@ RSpec.describe Validations::Sales::SaleInformationValidations do
       end
     end
   end
+
+  describe "#validate_discount_and_value" do
+    let(:record) { FactoryBot.build(:sales_log, value: 200_000, discount: 50, ownershipsch: 2, type: 9, saledate: now) }
+    let(:now) { Time.zone.local(2024, 4, 1) }
+
+    around do |example|
+      Timecop.freeze(now) do
+        example.run
+      end
+      Timecop.return
+    end
+
+    context "with a log in the 24/25 collection year" do
+      context "when in London" do
+        before do
+          record.la = "E09000001"
+        end
+
+        it "adds an error if value * discount is more than 136,400" do
+          record.discount = 80
+          sale_information_validator.validate_discount_and_value(record)
+          expect(record.errors["value"]).to include("The percentage discount multiplied by the purchase price is £160,000.00. This figure should not be more than £136,400 for properties in London.")
+          expect(record.errors["discount"]).to include("The percentage discount multiplied by the purchase price is £160,000.00. This figure should not be more than £136,400 for properties in London.")
+          expect(record.errors["la"]).to include("The percentage discount multiplied by the purchase price is £160,000.00. This figure should not be more than £136,400 for properties in London.")
+          expect(record.errors["postcode_full"]).to include("The percentage discount multiplied by the purchase price is £160,000.00. This figure should not be more than £136,400 for properties in London.")
+          expect(record.errors["uprn"]).to include("The percentage discount multiplied by the purchase price is £160,000.00. This figure should not be more than £136,400 for properties in London.")
+        end
+
+        it "does not add an error value * discount is less than 136,400" do
+          sale_information_validator.validate_discount_and_value(record)
+          expect(record.errors["value"]).to be_empty
+          expect(record.errors["discount"]).to be_empty
+          expect(record.errors["la"]).to be_empty
+          expect(record.errors["postcode_full"]).to be_empty
+          expect(record.errors["uprn"]).to be_empty
+        end
+      end
+
+      context "when in outside of London" do
+        before do
+          record.la = "E06000015"
+        end
+
+        it "adds an error if value * discount is more than 136,400" do
+          record.discount = 52
+          sale_information_validator.validate_discount_and_value(record)
+          expect(record.errors["value"]).to include("The percentage discount multiplied by the purchase price is £104,000.00. This figure should not be more than £102,400 for properties outside of London.")
+          expect(record.errors["discount"]).to include("The percentage discount multiplied by the purchase price is £104,000.00. This figure should not be more than £102,400 for properties outside of London.")
+          expect(record.errors["la"]).to include("The percentage discount multiplied by the purchase price is £104,000.00. This figure should not be more than £102,400 for properties outside of London.")
+          expect(record.errors["postcode_full"]).to include("The percentage discount multiplied by the purchase price is £104,000.00. This figure should not be more than £102,400 for properties outside of London.")
+          expect(record.errors["uprn"]).to include("The percentage discount multiplied by the purchase price is £104,000.00. This figure should not be more than £102,400 for properties outside of London.")
+        end
+
+        it "does not add an error value * discount is less than 136,400" do
+          sale_information_validator.validate_discount_and_value(record)
+          expect(record.errors["value"]).to be_empty
+          expect(record.errors["discount"]).to be_empty
+          expect(record.errors["la"]).to be_empty
+          expect(record.errors["postcode_full"]).to be_empty
+          expect(record.errors["uprn"]).to be_empty
+        end
+      end
+    end
+
+    context "when it is a 2023 log" do
+      let(:record) { FactoryBot.build(:sales_log, value: 200_000, discount: 80, ownershipsch: 2, type: 9, saledate: Time.zone.local(2023, 4, 1), la: "E06000015") }
+
+      it "does not add an error" do
+        sale_information_validator.validate_discount_and_value(record)
+        expect(record.errors["value"]).to be_empty
+        expect(record.errors["discount"]).to be_empty
+        expect(record.errors["la"]).to be_empty
+        expect(record.errors["postcode_full"]).to be_empty
+        expect(record.errors["uprn"]).to be_empty
+      end
+    end
+  end
 end