Stamp duty changes from 1st April 2025
Stamp Duty changes from 1st April 2025
The current stamp duty rates were put in place in September 2022 as a temporary measure and are due to end. New stamp duty rates will apply from 1st April 2025.
Whilst this change will affect everyone planning to move, unless the property purchase price is under £125,000, it will affect first time buyers more.
Presently, first-time buyers pay no stamp duty on homes worth up to £425,000 but from 1st April the threshold will drop to £300,000. So, a property worth £425,000 bought by first time buyers would incur no stamp duty under the current regime but would incur £6,250 after 1st April.
What is stamp duty?
Stamp Duty Land Tax (SDLT) , is a tax set by government, paid by the buyer of a property, as a lump sum upon completion.
Every now and again the prevailing government sets the rates and the last time this was done was in September 2022. In the Autumn Statement 2022, the intention was to make the changes permanent, but the new Labour Government of 2024 announced in their Autumn 2023 budget that the current thresholds will end on 31st March 2025.
There are various factors that affect whether stamp duty has to be paid and at what rate, for example;
- If the property is over £125,000
- Whether the property is an additional property
- Whether the buyer is a first-time buyer
- Whether the new property replaces a main residence
Changes from 1st April 2025
The nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
The nil rate threshold for first-time buyers (currently £425,000) will revert to £300,000.
The maximum purchase price for which first time buyers’ relief can be claimed (currently £625,000) will revert to £500,000.
Presently stamp duty rates for purchasing a standard main residential purchase of a freehold property for a UK residential property are:
| Property Value | Rate for main residence |
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
From 1st April 2025. The new stamp duty rates will be:
| Property Value | Rate for main residence |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
The example provided on the Government website is:
In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second £250,000 = £2,500
- 5% on the final £45,000 = £2,250
- The total amount payable will be : £4750
To check what stamp duty is applicable to a purchase please check the stamp duty calculator on the Government website : https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro
To take advantage of the current SDLT rates a property purchase must complete on or before 31st March 2025.
How does the stamp duty changes affect second home purchases?
From 1st April 2025 there will be an extra band added into the stamp duty thresholds for additional property purchases in England.
The current rates are:
| Property Value | Rate for additional property |
| Up to £250,000 | 5% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Over £1.5 million | 17% |
From 1st April 2025 the new rates will be :
| Property Value | Rate for additional property |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Over £1.5 million | 17% |
We published this news items on 7th February 2025
If you have requested a quotation in the last few weeks, we have quoted SDLT at the rates that apply after 1st April 2025.
Due to the amount of time left now, before the changes are applied, we quite reasonably cannot accept instructions in respect of transactions on the basis that completion must take place prior to 31st March 2025. We are unable to give any guarantee that this will be achieved.
We are currently working through high volumes of transactions and as a result, the national average for the time it takes a transaction to proceed from inception to completion is some 16 weeks. We always try to achieve completion in as short an amount of time as possible, but we are never in control of the other parties involved in a transaction, upon which parts of the conveyancing process depends.
You should not embark on a purchase transaction unless you have budgeted for the SDLT payable at the rates applicable at the time of completion. We advise that you plan your finances accordingly. We accept no liability for any direct or indirect financial loss arising out of legal completion being after 31st March 2025.
If you have any questions regarding the completion of a property purchase that you are currently making with us and how stamp duty is calculated please call us on 0191 4555361 or 0191 4974630.
