In 2022, the government announced a temporary increase to the thresholds that Stamp Duty Land Tax must be paid. With an end date of 31st March 2025, any house purchases that complete after this date will be subject to the original Stamp Duty rates prior to the change in 2022.
Below shows the current Stamp Duty rates (ending 31st March 2025):
- 0% up to £250,000
- 5% above £250,000 and up to £925,000
- 10% above £925,000 and up to £1,500,000
- 12% above £1,500,000
From 31st March 2025, the Stamp Duty rates on a standard residential purchase of a freehold property for an individual that is a UK resident and replacing their primary residence will be as follows:
- 0% up to £125,000
- 2% above £125,000 and up to £250,000
- 5% above £250,000 and up to £925,000
- 10% above £925,000 and up to £1,500,000
- 12% above £1,500,000
So, what does this mean for home buyers?
According to Girlings Solicitors, by purchasing your new home before the change happens, you could save around £2,500 on your Stamp Duty. In particularly, the Stamp Duty changes are likely to have the most significant impact on first time buyers.
What should prospective buyers do?
We would encourage those looking to move house, whether you are a downsizer, looking to up-size, or buy your first home to get in touch with our Sales team today!
Source: https://www.girlings.com/latest/upcoming-changes-to-stamp-duty-in-place-from-31-march-2025