7 Jan 2025
Stamp duty: how is it changing in 2025?
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax charged in England, Wales, and Northern Ireland by the Government. The amount of tax you will be required to pay depends on the cost of the property, whether you will be living in the property, and whether you own any other properties.
You will be required to pay this tax if you:
- Purchase a freehold property
- Purchase a new or existing leasehold
- Take on a mortgage or buy a share in a house
- Purchase a property through a shared ownership scheme
How much will stamp duty cost?
Up until 31st March 2025, those purchasing a property under £250,000 will be exempt from having to pay stamp duty, first time buyers are not required to pay stamp duty for a property costing less than £425,000.
However, changes on stamp duty were announced during the August budget by Chancellor, Rachel Reeves. These higher thresholds will end on 31st March 2025 where they will go back to the previous levels set in the mini-budget in September 2022.
From 1st April 2025
First time buyers
£0 - £300,000 – no stamp duty due
£300,001 - £500,000 - 5% charged on the £300k+
£500,000 - you cannot claim relief
Residential property
£0 - £125,000 - no stamp duty due
£125,001 - £250,000 - 2% charged
£250,001 - £925,000 - 5% charged
£925,001 - £1.5 million - 10% charged
£1.5 million+ - 12% charged
Additional properties
You will usually be required to pay an additional 5% on top of stamp duty rates if you are buying another residential property.
Example:
You buy a house for £465,440 from April 2025
| Type | Stamp duty cost |
| First time buyer | £8,272 |
| Residential (moving home) | £13,272 |
| Additional property | £36,544 |
When do you need to pay stamp duty?
You will have two weeks to pay stamp duty from the date of completion.
If you would like to find out more, please feel free to give our experienced mortgage brokers a call on 01628 507477.
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