Stamp Duty: How Is It Changing in 2025?

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax charged by the government in England, Wales, and Northern Ireland when you purchase property or land. The amount you pay depends on several factors, including:

  • The cost of the property
  • Whether you will live in the property
  • Whether you already own other properties

You’ll need to pay SDLT if you:

  • Purchase a freehold property
  • Buy 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 Does Stamp Duty Cost?

Currently, buyers benefit from higher thresholds for stamp duty exemptions, but these changes are temporary. Up until 31st March 2025, the following rules apply:

  • Properties under £250,000 are exempt from stamp duty.
  • First-time buyers are exempt for properties costing less than £425,000.

However, after 1st April 2025, the thresholds will revert to the levels set in the mini-budget of September 2022. Here’s what you can expect:

From 1st April 2025

First-Time Buyers:
  • £0 – £300,000: No stamp duty due
  • £300,001 – £500,000: 5% charged on the amount above £300,000
  • Above £500,000: No relief available
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
  • Above £1.5 million: 12% charged
Additional Properties:

If you’re purchasing an additional residential property, you’ll typically pay an extra 5% on top of the standard stamp duty rates.

Example Calculation:

Let’s say you buy a house for £300,000 after 1st April 2025. Here’s how the stamp duty would apply:

TypeStamp Duty Cost
First-Time Buyer£0
Residential (moving home)£5,000
Additional Property£20,000

When Do You Need to Pay Stamp Duty?

You must pay your stamp duty within two weeks of the completion date. Failure to do so may result in penalties or interest charges.

What Should Buyers Do Now?

The pending changes make 2025 a key year for property buyers. If you’re considering purchasing a property, here are some tips:

  • Act Before the Deadline: If you’re a first-time buyer or purchasing a property under £250,000, consider completing your purchase before 31st March 2025 to take advantage of the current exemptions.
  • Budget for Higher Costs: If you plan to buy after April 2025, ensure you account for the increased stamp duty in your financial planning.
  • Work with Local Experts: Swindon Home Finders can help you navigate the housing market and secure your dream home before the changes take effect.

Brendan Stock, Head of Sales at Swindon Home Finders, says: “The upcoming changes to stamp duty are a significant shift for buyers, especially first-time purchasers and those looking at properties around the £300,000 mark. Acting now to secure your home under the current thresholds could save you thousands. Our team is here to guide you every step of the way.”

For tailored advice and support, contact Swindon Home Finders today and let our experienced team guide you through the process. Don’t wait—start planning your move now!