Stamp Duty rules are changing in April 2025 in England and Northern Ireland, potentially costing first-time buyers, home movers, and investors/owners of more than one property thousands of pounds.
However, you can avoid these added costs by moving into your new home or completing a new purchase before March 31, 2025.
Try our Stamp Duty Calculator to see how much you will pay today
What is Stamp Duty?
- Stamp Duty Land Tax (SDLT) is a mandatory tax that is applied when purchasing a property or land in England and Northern Ireland
- Land Transaction Tax (LTT) is a mandatory tax applied when purchasing a property or land in Wales
To provide certainty to taxpayers, Land Transaction Tax (LTT) rates and bands remain under review, with no changes currently proposed.
How much will I pay as a first-time buyer?
Right now, first-time buyers in England and Northern Ireland don’t pay any stamp duty on homes priced up to £425,000. Starting next April, homes between £300,001 and £500,000 will incur a 5% stamp duty rate.
For example:
- Purchase price: £350,000
- Current Stamp Duty for first-time buyers: £0
- From April 1, 2025: £2,500
From April 1, 2025, the 5% is applied to the £50,000 that is over the starting point of £300,001.
First-time buyers pay no stamp duty on the first £225,000, then it’s 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1.5 million, and 12% above £1.5 million.
For example:
• Purchase price: £350,000
• Stamp Duty for first-time buyers: £7,500
Whilst (LTT) remains under review, the 6% is applied to houses £225,000 up to £400,000 (= £7,500). Total £7,500.
How will the changes affect buying and selling your main home?
Right now, home movers don’t pay any stamp duty on homes priced up to £250,000. Starting next April, homes between £125,001 and £250,000 will incur a 2% stamp duty rate.
For example:
- Purchase price: £350,000
- Current stamp duty for home movers: £5,000
- From April 1, 2025: £7,500
From April 1, 2025, the 2% is applied to houses £125,000 up to £250,000 (= £2,500), and then you add a further 5% to go above £250,000 up to £925,000 (= £5,000). Total £7,500.
For example:
• Purchase price: £350,000
• Stamp Duty for first-time buyers: £7,500
Whilst (LTT) remains under review, the 6% is applied to houses £225,000 up to £400,000 (= £7,500). Total £7,500.
How will the changes impact investors or owners of more than one property?
Right now, investors or purchasers who own more than one property pay 5% stamp duty on homes priced from £0 to £250,000. Starting next April, homes between £0 and £125,000 will incur a 5% stamp duty rate.
For example:
- Purchase price: £350,000
- Current Stamp Duty for investors, owners of more than one property: £22,500
- From April 1, 2025: £25,000
From April 1, 2025, the 5% is applied to houses up to £125,000 (= £6,250), and then you add a further 7% to go above £125,000 up to £250,000 (= £8,750), adding an additional 10% to go above £250,000 and up to £925,000 (= £10,000). Total £25,000
For example:
• Purchase price: £350,000
• Stamp Duty for investors, owners of more than one property: £21,450
Whilst (LTT) remains under review, the 4% is applied to houses up to £180,000 (= £7,200), and then you add a further 7.5% to go above £180,001 up to £250,000 (= £5,250), and then 9% from £250,001 to £400,000 (= £9,000). Total: £21,450.
You can avoid these added costs by moving into your new home or completing a new purchase before March 31, 2025.
To get started, book a no obligation property valuation for free. Our local sales experts will estimate the value of your home and answer any of your questions.
The Reeds Rains Content Marketing Team
