Stamp Duty Changes: Everything You Need to Know

Stamp Duty Changes: Everything You Need to Know

It is not an April Fool’s joke – the stamp duty land tax thresholds really are changing on 1^st April 2025. Stamp duty land tax (also referred to as SDLT or simply stamp duty) is payable by most property purchasers upon completion.

The tax is a handy way for the Government to raise revenue. Generally speaking, everything is rosy for HM Revenue & Customs (HMRC) when sold values and transaction numbers are high, such as during the pandemic years. A report recently released by HMRC, however, revealed the amount of income generated by stamp duty has decreased, and substantially.

According to its own figures, stamp duty receipts tumbled from £15,360 million to £11,615 million between the financial years 2022-2023 and 2023-2024 – a drop of 24%. The downwards trend reflects a property market moving to more subdued levels, with a cost of living crisis, high inflation and a return to mortgage rates in the 5% region pegging back the number of sales. Unsurprisingly, the Government retains the right to change stamp duty thresholds and this is what’s happening on 1^st April 2025.

Between now and 31^st March will be critical for buyers and sellers who have already started the conveyancing stage, while home movers of the future will need to adapt to the incoming rates in order to manage expectations.

It can be hard to keep track of all the property changes, so Viewber has produced this stamp-duty specific guide:

Keep conversations flowing with conveyancers

If a transaction is close to exchange and completion, there are still a few weeks left where the current stamp duty thresholds applies. It’s worth remembering the amount of stamp duty to pay is calculated just before completion, and transactions that complete on or after 1^st April 2025 will be subject to the new rates. If a deadline of 31^st March 2025 is to be met, communication is key. Much of the responsibility falls to the conveyancers but everyone can play their part.

It’s essential for the entire chain to know the aim is to complete before 1^st April 2025 so they’re all pulling in the same direction. Making sure all paperwork and documents are sent, signed and returned as quickly as possible will give the transaction the best chance.

Here’s a reminder of the stamp duty thresholds that apply up to 31st March 2025, applicable to previous homeowners who are purchasing a main residence.

Price of property                              Stamp duty (from 1^st April 2025)

Up to £250,000                                      Zero

£250,001 to £925,000                          5%

£925,001 to £1.5 million                      10%

More than £1.5 million                         12%

Know the new stamp duty rates

There’s no getting away from the fact property purchases are about to get more expensive. Knowing how much stamp duty is due in the future should be factored in when buying and selling, so take time to familiarise yourself with the new thresholds applicable from 1st April 2025.

As well as being an important part of budgeting for home buyers, awareness of the new stamp duty thresholds can be helpful when pitching the price of a property for sale. Choose a canny valuation just one pound under a threshold and you purchasers could save thousands of pounds.

Here are the new stamp duty rates as from 1^st April 2025. The below also applies to previous homeowners who are purchasing a main residence.

Stamp duty thresholds from 1^st April 2025

Price of property                              Stamp duty (from 1^st April 2025)

Up to £125,000                                       Zero

£125,001 to £250,000                          2%

£250,001 to £925,000                         5%

£925,001 to £1.5 million                     10%

More than £1.5 million                        12%

Recognise the difference for first-time buyers

First-time buyers are often referred to as the lifeblood of the property market and they are treated a little differently when it comes to stamp duty. A less expensive rate applies for true homebuying novices who have never owned a property before but the 1^st April also brings change.

First-timer buyers will see their current stamp duty discount reduce. Currently, first-timer buyers only pay stamp duty on the portion of a purchase over £425,000. On 1^st April 2025, however, this threshold will drop to £300,000.

A rate of 5% will on the portion of a first-time purchase between  £300,001 and £500,000. If a first-time buyer purchases a home worth more than £500,000, the first-time buyer stamp duty discount does not apply – a threshold that drops from £625,000 from 1^st April 2025.

It’s worth remembering that first-time buyer purchases under £300,000 – a figure that’s more than the national average house price, according to Nationwide – will remain stamp duty free.

Second home buyers will also see a change

Those buying an additional property – which could be a buy-to-let, an Airbnb or a holiday home – will find their purchase more expensive from 1^st April 2025. They too will be subject to the revised stamp duty thresholds, thanks to the reintroduction of the 2% bracket.

This hike comes after the Government already increased the additional-property surcharge (an extra tax just for those buying another property in addition to their main residence). The surcharge increased from 3% to 5% on 31^st October 2024.

Help with the moving process

Stamp duty is just one part of the home moving process and we understand there are several elements to balance. Viewber is designed to support all those in the buying, selling and letting market, conducting the property visits that are often the most time consuming and frustrating on someone’s behalf.

If you’d like assistance with viewings, open days, inspections, marketing and fire safety checks, please contact us.