Don't forget the stamp

For anyone looking to buy a home or any other property at the moment, don’t forget that the rules around Stamp Duty changed on 1 April 2025, meaning many more homebuyers will now pay more Stamp Duty. 

 

Stamp Duty, or to give it it’s full title Stamp Duty Land Tax (Land Transaction Tax in Wales and Land and Building Transaction Tax in Scotland) is one of the unavoidable costs of buying land or property in the UK. The amount you pay will depend on the value of the property and whether you are a first-time buyer or not.

 

In England, for a single property, and if it is the only property you own, you will pay:

 

Property or lease premium or transfer value	Stamp Duty tax rate
Up to £125,000	Zero
The next £125,000 (the portion from £125,001 to £250,000)	2%
The next £675,000 (the portion from £250,001 to £925,000)	5%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%
The remaining amount (the portion above £1.5 million)	12%

 

Property or lease premium or transfer value	Stamp Duty tax rate
Up to £125,000	Zero
The next £125,000 (the portion from £125,001 to £250,000)	2%
The next £675,000 (the portion from £250,001 to £925,000)	5%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%
The remaining amount (the portion above £1.5 million)	12%

For each other property you own, you will add another 5% on top of each of these rates.

For first-time buyers the rules are different, and you can claim a discount (relief). To be eligible for this, you and anyone else you are buying the property with must be first-time buyers.

 

• There is no Stamp Duty up to £300,000
• 5% Stamp Duty on the portion between £300,000 and £500,000
• If the property price is more than £500,000 then you cannot claim the relief and you will be subject to the Stamp Duty rates shown for non-first-time buyers.

 

Let’s see some examples of these changes to Stamp Duty and how they could affect your budget:

 

Example 1 -  buying a property for £350,000

 

	Stamp Duty from 1 April 2025	Stamp Duty before 31 March 2025	Increased Stamp Duty payable
First time buyers	£2,500	Nil	£2,500
Existing homeowners moving house	£7,500	£5,000	£2,500

 

Example 2 – buying a property in April 2025 for £625,000

 

	Stamp Duty from 1 April 2025	Stamp Duty before 31 March 2025	Increased Stamp Duty payable
First time buyers	£21,250	£10,000	£11,250
Existing homeowners moving house	£21,250	£18,750	£2,500

 

Stamp Duty isn’t the only cost you will have to pay when buying a home. You will also need to factor in:

• Legal fees and surveying fees
• Mortgage arrangement and broker fees
• Moving costs
• The costs of selling your existing home, if you have one
• Change in Council Tax and utilities costs

 

Your home may be repossessed if you do not keep up repayments on your mortgage. You should be aware that not all buy-to-let mortgages are regulated by the Financial Conduct Authority (FCA). This means that if you chose to take up such a mortgage, you will not have the means of redress offered for regulated mortgage contracts in the event that you should have any complaints.