Stamp Duty

Stamp Duty Land Tax is set to change in April 2025 in England and Northern Ireland. For first time-buyers, those moving homes, property investors, or owners of multiple properties, it’s important to know how the changes will financially impact you.

To avoid the additional Stamp Duty Land Tax costs, those looking to move must act quickly by moving into a new home or completing a purchase before March 31, 2025.

What is Stamp Duty?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

You will have to pay SDLT when:

• buying a freehold property

• purchasing a new or existing leasehold

• buy a property through a shared ownership scheme

• take on a mortgage or buy a share in a house

With the changes to SDLT taking place in April 2025, some first-time buyers will now have to pay SDLT.

The amount of stamp duty you owe depends on the property cost, whether it will be used for residential purposes, and whether you own another property.

Do First Time Buyers Pay Stamp Duty?

Currently, first-time buyers pay no stamp duty on properties priced up to £425,000. A reduced rate of 5% applies to properties priced between £425,001 and £625,000.

From April 2025, the tax-free threshold will decrease to £300,000 and properties priced between £300,001 and £500,000 will incur a 5% stamp duty rate.

Additionally, the higher threshold for first-time buyers’ relief will reduce from £625,000 to £500,000. Properties above £500,000 will no longer qualify for the relief, and the standard rates for main residences will apply instead.

Therefore, a first-time buyer purchasing a property worth more than £500,000 will face an additional cost of £11,250 in stamp duty compared to the current rules

Stamp Duty Land Tax Changes in 2025: What Home Movers Need to Know

Currently those looking to move property don’t need to pay any stamp duty land tax on any home up to the price of £250,000. However, from April 2025, properties between £125,001 and £250,000 will incur a 2% stamp duty rate.

Therefore, if you are purchasing a property priced £350,000 after April 2025 you will have to pay £7,500 in stamp duty, compared to the previous £5,000.

From April 1, 2025, a 2% stamp duty rate will apply to the portion of the property price between £125,001 and £250,000 (e.g., £2,500 on a £250,000 property). For the remainder of the property price above £250,000 and up to £925,000, a 5% rate will apply (e.g., £5,000 on a £350,000 property). In total, this results in a stamp duty of £7,500.

How Changes to Stamp Duty Land Tax Will Impact Investors?

Currently, investors or purchasers who own more than one property pay a 5% stamp duty on properties priced up to £250,000. However, from April 2025, the 5% rate will apply to homes priced up to £125,000.

For example, if you are purchasing a property priced at £350,000 after April 2025, the stamp duty for investors (owners of more than one property) will be £25,000, an increase from the current £22,500.

From April 2025, the 5% rate will apply to the portion of the property price up to £125,000 (e.g., £6,250 on a £125,000 property). The next £125,000 (from £125,001 to £250,000) will be taxed at 7% (e.g., £8,750 on a £250,000 property), and any portion above £250,000 will incur a 10% rate (e.g., £10,000 on a £350,000 property). The total stamp duty will be £25,000.

Avoid Additional Stamp Duty Costs

To avoid the added stamp duty costs set to take effect after March 31, 2025, consider moving into your new home or completing your purchase before then.