Since the announcement of Labour’s Autumn Budget in October 2024, it has undoubtedly sparked widespread discussion. One of the things pressing on Brits is the changes to stamp duty which could have significant implications on homebuyers across the country.
What is Stamp Duty?
Stamp duty, otherwise known as Stamp Duty Land Tax (SDLT), is a tax payable when purchasing a property or piece of land within the curtilage of a property. This tax is due 14 days after completion, and your conveyancer or solicitor will act as your agent in submitting the return and payment.
The amount of stamp duty you will pay upon completion is dependent on several factors:
- Whether you are a first-time buyer
- Whether it will be your primary residential property (main residence)
- Whether it is an additional property
- Whether you are a UK resident
- The price of the property
In 2022, the Conservative government introduced a temporary change to stamp duty, reducing the upfront costs of moving home and, in turn, supporting the housing market. However, looking ahead to 1st April 2025, homebuyers in the UK can expect to see these rates change once again. In many ways, these changes are reverting back to the levels we saw prior to the temporary changes imposed in 2022.
What’s changing from April 1st 2025?
So, what exactly is changing? In simple terms, the property value thresholds on stamp duty are being lowered. This means that as of 1st April 2025, more homebuyers may be subject to paying stamp duty, potentially resulting in higher costs when moving. These changes may have bigger implications in certain areas, especially those where housing prices are higher such as London.
Stamp Duty Rates
This applies to individuals who own a single residential property and are seeking to move.
Before 31st March 2025, those who are not first-time buyers and were looking to move did not have to pay SDLT if the property was valued under £250,000, or on the first £250,000 of the total price. As the threshold is being lowered to £125,000, meaning any amount over this will incur SDLT.
| Property Value | Until March 31st 2025 | From 1st April 2025 |
| Up to £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001- £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| £1,500,000 + | 12% | 12% |
Here’s an example:
Before 31st March 2025:
- You are purchasing a property with a value of £375,000
- 0% on the first £250,000
- 5% on the remaining £125,000
- Total stamp duty: £6,250
From 1st April 2025
- You are purchasing a property with a value of £375,000
- 0% on the first £125,000
- 2% on the remaining £125,000
- 5% on the remaining £125,000
- Total stamp duty: £8,750
There are also special rates and alternative calculations used for shared-ownership housing.
First Time Buyers:
Previously, the threshold for first-time buyers was capped at £425,000 meaning that any residential property sold under that amount, was exempt from paying stamp duty. As of April 2025, this threshold is being lowered to just £300,000 and if surpassed, the buyer will pay 5% stamp duty. Here’s a breakdown:
| Before 31st March 2025 | From 1st April 2025 | ||
| Up to £300,000 | 0% | Up to £300,000 | 0% |
| £300,001 – £425,000 | 0% | £300,001 – £425,000 | 5% |
| £425,001 – £500,000 | 5% | £425,001 – £500,000 | 5% |
| £500,001 – £625,000 | 5% | £500,001 – £625,000 | National standard SDLT rates apply |
Here’s an example:
Before 31st March 2025:
- You’re a first-time buyer purchasing a property valued at £375,000
- 0% on £300,000
- 0% on the remaining £75,000 = £0
- Total stand duty: £0
From 1st April 2025:
- You’re a first-time buyer purchasing a property valued at £375,000
- 0% on the first £300,000
- 5% of £75,000 = £3,750
- Total stamp duty: £3,750
First-time buyers looking to purchase a property over £500,000 (but under £925,000) will not be able to claim relief, and will be looking at paying the standard stamp duty fees as of 1st April 2025.
Additional Residential Properties
Rates will also change for those looking to purchase additional properties. These increases are also applicable to landlords and buy-to-let investors.
| Property Value | Until March 31st 2025 | From 1st April 2025 |
| Up to £125,000 | 5% | 5% |
| £125,001 – £250,000 | 5% | 7% |
| £250,001- £925,000 | 10% | 10% |
| £925,001 – £1,500,000 | 15% | 15% |
| £1,500,000 + | 17% | 17% |
The main changes are between those purchasing properties between the value of £125,001-£250,000 as they will see a 2% increase in stamp duty charges being imposed.
Non-UK Residents
If you haven’t been in the UK for at least 183 days (6 months) in the 12 months before purchasing, you’re considered a non-UK resident for SDLT purposes.
Non-UK residents typically face a 2% surcharge when buying residential property in England or Northern Ireland. However, some buyers may be eligible for refunds.
Here to help
Fully understanding SDLT can be really challenging. At Clapham & Collinge, we understand that purchasing a property is one of the most significant financial transactions you will carry out. That’s why our expert team of legal advisors are here to help you every step of the way. Whether you’re purchasing your first home or moving to your next, reach out to one of our conveyancing solicitors today and start your journey with confidence, supported every step of the way.
Norwich
Tel: 01603 693500
Email: enquiries@clapham-collinge.co.uk
Sheringham
Tel: 01263 823398
Email: enquiries@clapham-collinge.co.uk
North Walsham
Tel: 01692 660230
Email: enquiries@clapham-collinge.co.uk
With the Spring Budget being announced on the 26th March 2025, our legal experts are here to guide you through this ever-changing landscape, carefully reviewing every detail.