CHANGES to Stamp Duty Land Tax (SDLT) rates for home buyers come in on April 1 this year.
As the deadline for the threshold changes approaches, the best advice is to instruct a conveyancer immediately and bring any home-buying plans forward to try and beat the deadline.
Amanda Cowley, director in our conveyancing department looks at the changes and how home buyers should act quickly.
This article overs:
- What is stamp duty?
- What are the changes?
- What does this mean for first-time buyers?
- How about second home purchases?
- Your next move?
What is stamp duty?
Stamp duty, or Stamp Duty Land Tax (SDLT), is a government tax paid by the property buyer, as a lump sum upon completion.
The total paid depends on whether a buyer is:
- A UK resident
- Purchasing a property as an individual or company
- A first-time buyer
- Replacing a main residence
- Purchasing additional property
What are the changes?
From 1st April 2025, stamp duty rates will be:
Proportion of property value Rate for main residence
Up to £125,000 0%
£125,001 to £250,000 2%
£250,001 to £925,000 5%
£925,001 to £1.5 million 10%
Over £1.5 million 12%
What does this mean for first-time buyers?
But from April 1, 2025:
- The nil rate threshold for first-time buyers (currently £425,000) returns to the previous level of £300,000.
- The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 and will return to the previous level of £500,000.
First-time buyer stamp duty rates from 1st April 2025:
Proportion of property value Rate for first-time buyers
Up to £300,000 0%
£300,001 to £500,000 5%
How about second home purchases?
From 1st April 2025, stamp duty rates will be:
Proportion of property value Rate for additional property
Up to £125,000 5%
£125,001 to £250,000 7%
£250,001 to £925,000 10%
£925,001 to £1.5 million 15%
Over £1.5 million 17%
Your next move?
Amanda Cowley commented: “As the deadline for the threshold changes to Stamp Duty approaches, the best advice is to instruct our conveyancers immediately and bring any home-buying plans forward so we can try and beat the date deadline.”
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