April 2025 Stamp Duty changes and what they mean for buyers

In April 2025, changes to Stamp Duty rules could potentially cost first-time buyers thousands of pounds.

To avoid these added costs, you must move into your new home or complete your purchase by March 31, 2025.

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

Land Transaction Tax (LTT) rates and bands remain under review, with no changes currently proposed.

How much will I pay as a first-time buyer?

Currently, first-time buyers in England and Northern Ireland don’t pay any stamp duty on properties valued up to £425,000. However, from April 1, 2025, homes priced between £300,001 and £500,000 will be subject to a 5% stamp duty rate.

For example:

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

After April 1 2025, the 5% rate will apply to the £50,000 above the £300,001 threshold.

In Wales, the situation is different. Unlike in England, there are no specific Land Transaction Tax (LTT) reliefs or exemptions for first-time buyers, regardless of whether they are buying a primary residence or an investment property. That said, many first-time buyer homes in Wales fall close to or within the zero-rate threshold of £225,000.

The LTT structure for first-time buyers in Wales is as follows:

• No tax on the first £225,000 of the purchase price.
• 6% on amounts between £225,001 and £400,000.
• 7.5% on £400,001 to £750,000.
• 10% on £750,001 to £1.5 million.
• 12% on anything above £1.5 million.

For 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, which totals £7,500. While LTT remains under review, this rate structure currently applies.

How will these changes impact buying and selling your primary home?

Currently, if you’re moving home, you don’t have to pay stamp duty on properties costing up to £250,000. However, starting from April 1, 2025, homes priced between £125,001 and £250,000 will attract a 2% stamp duty rate.

Example:

• Purchase price: £350,000
• Stamp duty now: £5,000
• Stamp duty from April 1, 2025: £7,500

From April 2025, the 2% rate applies to the portion of the property price between £125,001 and £250,000 (£2,500). Above £250,000, the 5% rate applies up to £925,000 (£5,000). Combined, this totals £7,500.

For Welsh home movers, no stamp duty is charged on the first £225,000 of the purchase price. Then, the rates are 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 anything over £1.5 million.

Example:

• Purchase price: £350,000
• Stamp duty (LTT): £7,500

For Wales, the 6% rate is applied to the portion of the price between £225,001 and £400,000, which amounts to £7,500.

How will these changes affect investors or owners of multiple properties?

Currently, individuals who own more than one property pay 5% stamp duty on properties priced between £0 and £250,000. From April 1, 2025, the 5% rate will only apply to the first £125,000 of the property value.

For instance:

• Property price: £350,000
• Stamp duty now: £5,000
• Stamp duty from April 1, 2025: £25,000

From April 2025, the new structure will impose 5% on the first £125,000 (£6,250), followed by 7% on the amount between £125,001 and £250,000 (£8,750). An additional 10% is applied to amounts exceeding £250,000 (£10,000). This totals £25,000.

In Wales, where Land Transaction Tax (LTT) is still under review, multiple property owners currently pay 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 amounts above £1,500,000.

Example:

• Property price: £350,000
• Stamp duty now: £21,450

In this case, the breakdown would be: 4% on £180,000 (£7,200), 7.5% on the next £70,000 (£5,250), and 9% on the final £100,000 (£9,000), totaling £21,450.

To avoid these higher rates, consider moving into your new property or completing the purchase before March 31, 2025. Start today by booking a free property valuation with our local sales experts, who can assess your home’s value and address any queries.