Stamp duty is changing in 2025

Temporary increases to the stamp duty thresholds introduced in September 2022 are due to end from 31st March 2025, increasing the amount payable, particularly for first time buyers.

What is stamp duty and what’s changing?

Stamp duty, or Stamp Duty Land Tax (SDLT), is a tax paid buy the buyer of a property as a single lump sum upon completion of the purchase. In September 2022, the Conservative Government announced a temporary change to stamp duty, to lower the upfront costs of moving.

How is it changing?

From 31st March the following changes come into effect:

• The nil-rate threshold (value of a property that can be purchased and pay no stamp duty) will return to £125,000 from the current level of £250,000

• The higher nil-rate threshold specifically for first-time buyers will return to £300,000 from the current level of £425,000

• The maximum property price that can receive First-Time Buyers’ Relief (a reduced stamp duty rate) will return to £500,000 from the current level of £625,000

Current stamp duty rates for main residences in England

Proportion of property value	Rate for main residence
Up to £250,000	0%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Over £1.5 million	12%

Future stamp duty rates from 31st March 2025

Proportion of property value	Rate for main residence
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
Over £1.5 million	12%

Current first-time buyer stamp duty rates

Proportion of property value	Rate for first-time buyers
Up to £425,000	0%
£425,001 to £625,000	5%

Future first-time buyer stamp duty rates from 31st March 2025

Proportion of property value	Rate for first-time buyers
Up to £300,000	0%
£300,001 to £500,000	5%

Affect for first-time buyers

The upcoming changes are likely to have the most impact on first-time buyers, as the value of properties attracting stamp duty is reduced. For example, a first-time buyer purchasing a property for £400,000 would currently pay no stamp duty. From 31st March 2025 they would pay £5,000 and this will need to factor into budget planning.

Can I avoid these stamp duty changes?

The only way to avoid these changes is to complete the purchase of your new property before 31st March 2025. With the average house purchase taking between three and four months, sometimes longer, to avoid these changes you are likely to need to start the process now.

Information correct as of 20th October 2024.