Stamp Duty is changing: Here’s what you need to know.
As you may know, the amount at which house buyers in England and Northern Ireland will start paying Stamp Duty Land Tax is due to change on the 1st April 2025.
Currently, if you’re not a first time buyer, you’ll need to start paying Stamp Duty tax if the property you’re buying is over £250,000. But this limit will revert to include properties over £125,000, meaning that you could be liable to pay if you can’t complete the purchase before the end of March 2025.
There are also changes if you’re a first time buyer too. From April, the value at which you’ll need to start paying Stamp Duty will decrease from the current value of £425,000 to properties over £300,000.
Need to beat the deadline?
When you’re looking to buy a property, every penny matters and the last thing you want is to pay extra tax.
We’re on hand to help. Our dedicated team are ready to receive, assess and decide on your mortgage application quickly, so that you can aim to complete your purchase before April 2025 begins – potentially saving thousands.
Get in touchHere’s everything you need to know about the changes
For a main residency property (excluding first time buyers)
If you’re buying a single property that will be your main residence, and you don’t own another property, the value at which you’ll start to pay Stamp Duty is set to decrease from £250,000 to £125,000.
Use the tables below to see how much tax you’ll pay before the April deadline, and how much it will rise by after the April 2025 deadline.
Stamp Duty tax rates up to 31st March 2025
| Property or lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £250,000 | Zero |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Stamp Duty tax rates from 1st April 2025
| Property or lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
For first time buyers
If you’re a first time buyer, and buying a single property, you’ll get a tax relief. This means that you won’t pay as much in Stamp Duty as someone who has bought a house before (unless the value of the property exceeds a certain amount).
Stamp Duty tax rates up to 31st March 2025
If the price of the property is over £625,000, the first time buyer relief cannot be claimed.
| Property or lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £425,000 | Zero |
| On portion between £425,000 and £625,000 | 5% |
Stamp Duty tax rates from 1st April 2025
If the price is over £500,000, the first time buyer relief cannot be claimed.
| Property or lease premium or transfer value | Stamp Duty Land Tax rate |
|---|---|
| Up to £300,000 | Zero |
| On portion between £300,000 and £500,000 | 5% |
For investors and owners of additional properties
If you’re buying additional properties (either as a second home or as an investment opportunity), you’ll need to add an additional 5% to the amounts shown in the tables. This includes any table that states zero.
For full explanations and more information, be sure to visit the Government’s webpage on Stamp Duty. There, you’ll be able to find out about any other reliefs or exemptions that apply, including any rules on shared ownership purchases and property transfers.
And, if time is of the essence and you need help securing a mortgage, get in touch to see how we can support.
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