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Understanding Your Stamp Duty Savings

13 January 2025

We have put together our simple guide to Stamp Duty Land Tax, so that you are aware of the upcoming changes and what it means for you as a buyer when buying a new home!

 

What is Stamp Duty?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England.

You pay the tax when you:

• Buy a freehold property
• Buy a new or existing leasehold
• Buy a property through shared ownership scheme
• Are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house 

 

The Stamp Duty Increase:

The reduction in Stamp Duty is due to end on 31st March 2025. The price at which you do not have to pay stamp duty on a home will lower from £250,000 to £125,000. If you are a first- time buyer, the price will lower from £425,000 to £300,000

 

The Stamp Duty Thresholds:

 

Thresholds up to 31 March 2025: SDLT starts to apply when you buy property that costs:

£250,000 for residential properties

£425,000 for first-time buyers buying a residential property worth £625,000 or less

£150,000 for non-residential land and properties

 

Thresholds from 1 April 2025 SDLT starts to apply when you buy property that costs:

£125,000 for residential properties

£300,000 for first-time buyers buying a residential property worth £500,000 or less

£150,000 for non-residential land and properties

 

Are you a First Time Buyer?

 

You will not need to pay SDLT if you are a first time buyer purchasing a home worth less than £425,000.

However from March 31st this will lower to £300,000.

You will only pay 5% on any proportion between £300,000 - £500,000

However, if the price of the home is £500,000 or more - you will be required to pay normal Stamp Duty Rates.

 

How much will I have to pay come the 1^st April 2025?

 

Brochure

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