28/11/2024
Changes to Stamp Duty Coming in April 2025: What You Need to Know
If you're considering buying property in the near future, it's important to be aware of the significant Stamp Duty changes set to take effect on 1st April 2025. These changes will impact both first-time buyers and those purchasing additional properties.
Here’s a breakdown of the changes:
1️⃣ For First-Time Buyers:
Current rules (until 31st March 2025):
-No Stamp Duty on properties up to £425,000.
-5% on the portion between £425,001 and £625,000.
New rules from 1st April 2025:
-No Stamp Duty on properties up to £300,000.
-5% on the portion between £300,001 and £500,000.
-Purchases above £500,000 will no longer qualify for first-time buyer relief and will follow standard SDLT rates.
This means first-time buyers purchasing homes above £300,000 will pay more Stamp Duty after the changes come into effect.
2️⃣ For Other Buyers:
-The 0% threshold for Stamp Duty will drop from £250,000 to £125,000, making more transactions taxable.
Rates will be as follows:
2% on £125,001–£250,000.
5% on £250,001–£925,000.
3️⃣ Investors and Second Home Buyers:
An additional 5% surcharge remains on top of these rates, affecting buy-to-let investors and second-home buyers.
