How Stamp Duty changes will affect you in April 2025

Changes to Stamp Duty rules in April 2025 will see buyers in England and Northern Ireland potentially paying thousands of pounds more for their property transactions.

Unless your sale is complete by March 31 2025, the purchase could be subjected to the new Stamp Duty rules

What is Stamp Duty?

• Stamp Duty Land Tax (SDLT) is a mandatory tax applied when purchasing a property or land in England and Northern Ireland
• Land Transaction Tax (LTT) is a mandatory tax applied when purchasing a property or land in Wales

At the time of writing, Land Transaction Tax (LTT) rates and bands remain under review, with no changes currently proposed.

How much will first-time buyers pay?

Currently, in England and Northern Ireland, first-time buyers are exempt from paying stamp duty on homes priced up to £425,000. However, starting April 1, 2025, a 5% stamp duty rate will apply to properties priced between £300,001 and £500,000.

Example:

• Purchase price: £350,000
• Stamp Duty now (first-time buyers): £0
• Stamp Duty after April 1, 2025: £2,500

From April 2025, the 5% tax will only apply to the portion of the property’s price exceeding £300,001. In this case, that’s £50,000.

In Wales, the rules differ. Unlike in England, first-time buyers don’t receive any specific Land Transaction Tax (LTT) exemptions or relief, whether purchasing a main home or a buy-to-let property. However, many properties for first-time buyers fall within or just above the £225,000 zero-rate threshold.

For Welsh first-time buyers:

• The first £225,000 of the purchase price is tax-free.
• Tax is charged at 6% on the portion between £225,001 and £400,000.
• Additional rates apply: 7.5% on £400,001–£750,000, 10% on £750,001–£1.5 million, and 12% on amounts above £1.5 million.

Example:

• Purchase price: £350,000
• Stamp Duty for first-time buyers: £7,500

This is calculated as 6% on the £125,000 between £225,000 and £350,000, totaling £7,500. While the LTT rates are under review, this structure remains unchanged.

What do the changes mean for buying or selling your home?

At present, those moving house don’t pay stamp duty on properties valued at £250,000 or less. However, from April 1, 2025, properties priced between £125,001 and £250,000 will be taxed at a 2% stamp duty rate.

Example Calculation:

• Price: £350,000
• Current stamp duty: £5,000
• From April 1, 2025: £7,500

After April 2025, 2% will be charged on the portion of the price from £125,001 to £250,000 (£2,500). A 5% rate will apply to the amount between £250,001 and £925,000 (£5,000). In total, this equals £7,500.

In Wales, no stamp duty is paid on the first £225,000 of a property. Rates are then 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1.5 million, and 12% for amounts over £1.5 million.

Example Calculation:

• Price: £350,000
• LTT (Wales): £7,500

Here, 6% is charged on the portion from £225,001 to £400,000, giving a total of £7,500.

How will these updates affect property investors and owners of multiple homes?
At present, investors and owners of additional properties pay 5% stamp duty on homes priced between £0 and £250,000. Starting April 1, 2025, this 5% rate will only apply to the first £125,000 of the property value.

For example:

• Home price: £350,000
• Current stamp duty for investors: £5,000
• From April 2025: £25,000

Under the new system, 5% will be charged on the first £125,000 (£6,250), 7% on the amount between £125,001 and £250,000 (£8,750), and 10% on the portion exceeding £250,000 (£10,000). This totals £25,000.

In Wales, Land Transaction Tax (LTT) is still under review. Currently, for multiple property owners, the rates are 4% on the first £180,000, 7.5% on £180,001 to £250,000, 9% on £250,001 to £400,000, 11.5% on £400,001 to £750,000, 14% on £750,001 to £1,500,000, and 16% for anything above £1,500,000.

Example calculation:

• Home price: £350,000
• Current LTT for investors: £21,450

This calculation includes 4% on £180,000 (£7,200), 7.5% on the next £70,000 (£5,250), and 9% on the remaining £100,000 (£9,000), totaling £21,450.

To minimize these costs, aim to complete your purchase or move into your new property before March 31, 2025. Get started by scheduling a free property valuation with our local experts, who will provide a home value estimate and address your questions.

How will these updates affect property investors and owners of multiple homes?

At present, investors and owners of additional properties pay 5% stamp duty on homes priced between £0 and £250,000. Starting April 1, 2025, this 5% rate will only apply to the first £125,000 of the property value.

For example:

• Home price: £350,000
• Current stamp duty for investors: £5,000
• From April 2025: £25,000

Under the new system, 5% will be charged on the first £125,000 (£6,250), 7% on the amount between £125,001 and £250,000 (£8,750), and 10% on the portion exceeding £250,000 (£10,000). This totals £25,000.

In Wales, Land Transaction Tax (LTT) is still under review. Currently, for multiple property owners, the rates are 4% on the first £180,000, 7.5% on £180,001 to £250,000, 9% on £250,001 to £400,000, 11.5% on £400,001 to £750,000, 14% on £750,001 to £1,500,000, and 16% for anything above £1,500,000.

Example calculation:

• Home price: £350,000
• Current LTT for investors: £21,450

This calculation includes 4% on £180,000 (£7,200), 7.5% on the next £70,000 (£5,250), and 9% on the remaining £100,000 (£9,000), totaling £21,450.

To minimize these costs, aim to complete your purchase or move into your new property before March 31, 2025. Get started by scheduling a free property valuation with our local experts, who will provide a home value estimate and address your questions.