What is stamp duty?
Stamp duty, or Stamp Duty Land Tax (SDLT), is a government tax which is paid by the buyer of a property, as a lump sum upon completion. It is paid by buyers who are purchasing a property or land over a certain price bracket.
The amount of SDLT liability depends on several factors, including (but not limited to) whether a buyer is:
A UK resident
Purchasing a property as an individual or company
A first-time buyer
Replacing a main residence
Purchasing additional property
What You Need to Know
If you’re thinking about buying a home or investment property, it’s important to be aware of the changes coming to Stamp Duty Land Tax (SDLT) from 1st April 2025.
In 2022, the government increased the SDLT thresholds to help buyers manage the rising cost of living. At the moment:
No Stamp Duty is paid on the first £250,000 of a property’s value.
First-time buyers don’t pay any Stamp Duty on properties up to £425,000 and benefit from reduced rates up to £625,000.
These changes were only temporary. From April 2025, the thresholds are due to return to their previous levels:
The nil-rate band will drop back to £125,000.
First-time buyer relief will apply up to £300,000.
What does this mean for you?
If you complete your purchase after 31st March 2025, you could end up paying more in Stamp Duty. For example, a homebuyer purchasing a property for £300,000:
Today, they pay £2,500 (or nothing if they’re a first-time buyer).
After April 2025, that tax bill could increase significantly.
Planning ahead
If you’re considering a move or investment purchase, it’s worth factoring this timeline into your plans. Completing your purchase before the changes take effect could save you a considerable amount.
If you’d like to discuss your mortgage options or how these changes might impact you, feel free to get in touch for a chat.https://www.major-financial.co.uk/contact
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