What is stamp duty?
Stamp duty is the tax charged by the Government when you buy a home of more than £250,000. However, the stamp duty thresholds will be changing so, if you move by 31st March 2025, you could save thousands.
Why do I need to pay it?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC – which they will only issue on receipt of the stamp duty due on the purchase of the property.
The transfer of funds to pay the stamp duty will be managed for you by your solicitor.
Move by 31st March 2025 to save thousands
If you purchase before 31st March 2025: For homes over £250,000 there is no stamp duty to pay on the first £250,000, then the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
0% (Zero) |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
If you purchase from 1st April 2025: The threshold for no stamp duty will be lowered. This means for homes over £125,000 there will be no stamp duty to pay on the first £125,000, then the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
0% (Zero) |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
What if I'm a first time buyer?
If you purchase before 31st March 2025: If you're a first time buyer, purchasing a home up to £625,000, the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £425,000 |
0% (Zero) |
|
£425,001 to £625,000 |
5% |
Note: For properties priced over £625,000, no additional first time buyer relief is available.
If you purchase from 1st April 2025: The threshold for no stamp duty will be lowered and the maximum cap will also be lowered. This means, if you're a first time buyer, purchasing a home up to £500,000, the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £300,000 |
0% (Zero) |
|
£300,001 to £500,000 |
5% |
Note: For properties priced over £500,000, no additional first time buyer relief will be available.
What if I'm an investor or own more than one property?
If you purchase before 31st March 2025: If you are buying an investment property or an additional home, the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
5% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |
If you purchase from 1 April 2025: If you are buying an investment property or an additional home, the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
5% |
|
£125,001 to £250,000 |
7% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |