Stamp Duty Changes: A homebuyer’s guide
Stamp duty is changing and could add thousands of pounds to the cost of moving home if you complete after 1st April 2025.
What is stamp duty?
Stamp Duty Land Tax is a levy paid to the Government when buying a property in England. It’s more commonly known as stamp duty. This can vary depending on the price of the property, your buying status and the number of properties you own.
Why is stamp duty changing?
The previous Government had temporarily increased the thresholds for stamp duty, meaning no stamp duty was payable on a larger portion of a property price. This was to help boost the housing market by reducing some of the costs associated with moving home. The temporary changes are due to end on March 31, 2025, so those who complete from April 1, 2025 will pay a different rate of stamp duty.
How will stamp duty change?
The current threshold above which stamp duty is paid on homes in England is £250,000 for movers replacing their main residence and £425,000 for first time buyers. Those thresholds are due to change from April 1 when they’ll reduce to £125,000 and £300,000 respectively.
How to work out how much stamp duty you’ll pay
You can use the stamp duty calculator on the government website to help work out how much stamp duty you’ll pay before March 31, 2025 or from April 1, 2025. You may want to add the cost of stamp duty onto your mortgage, but be aware that you’ll pay interest on this. It’s important you make an informed decision about how much you can afford to pay for a home. We can put you in touch with independent financial advisers with access to the entire mortgage market.