What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a government tax paid by property buyers as a lump sum upon completion when purchasing property or land above a certain price. The amount depends on factors such as residency, whether the buyer is an individual or a company, first-time buyer status, replacing a main residence, or buying additional property.

How is Stamp Duty changing?

From 1st April 2025:

• The nil rate threshold will drop from £250,000 to £125,000.
• For first-time buyers, the nil rate threshold will decrease from £425,000 to £300,000.
• The maximum property price for claiming First-Time Buyers Relief will reduce from £625,000 to £500,000.

Some Examples of Properties:

How will the Stamp Duty Changes 2025 will affect buyers?

If you are moving home and are purchasing a property worth £800,000 and you complete on this by 31st March 2025 you will have to pay £27,500 in SDLT.

If you were to purchase the same home but complete on or after 1st April 2025 your SDLT payment will increase to £30,000.

*These figures are to be used as an example only and are based on single rate SDLT for UK residents. 

If you are a first time buyer and are currently purchasing a property worth £600,000 and complete on this by 31st March 2025 you will have to pay £8,750 in SDLT.

If you do not manage to complete by 1st April 2025 then your SDLT will increase to £20,000.

What is First-Time Buyers Relief?

First-Time Buyers Relief is a government scheme designed to reduce the amount of Stamp Duty Land Tax (SDLT) that first-time buyers pay when purchasing their first home. This relief helps make homeownership more affordable for those entering the property market for the first time.

Here’s how it works:

• Current Rules (2024): First-time buyers do not pay SDLT on the first £425,000 of the property’s value. For properties worth up to £625,000, SDLT is only charged on the portion above £425,000.
• Changes from 1st April 2025: The nil rate threshold for first-time buyers will drop to £300,000, and the maximum property value eligible for relief will decrease to £500,000.

Example:

• If you purchase a property worth £600,000 under the current rules, you would pay SDLT on £175,000, resulting in a reduced tax bill.
• After the changes in 2025, purchasing the same property would mean paying SDLT on £300,000, leading to a significantly higher cost.

Purchasing now would save you over £11,000!

*These figures are to be used as an example only and are based on single rate SDLT for UK residents who are first time buyers.

You can find out more about the upcoming SDLT changes on the Government website here. 

If you are interested in finding out how we can help you move before 1st April 2025, contact us now to explore your options and discover our move in ready new build homes!