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You can use our stamp duty calculator below to see exactly how much these changes could cost you, whether you’re moving home, or if you’re a first-time buyer
First-time buyers and house movers will pay thousands of pounds more in stamp duty from this April – but just how much more will you have to fork out?
Stamp duty is a tax that you might have to pay when you purchase a property. It all depends on the price of the property you’re buying, if you’re a first-time buyer, and if the place you’re purchasing will be your main residence, or a second property. But major changes are coming in April that means the thresholds for stamp duty in England and Northern Ireland are changing.
You have to pay stamp duty if the property you’re buying is your only home and is worth over £250,000. This higher rate was introduced in September 2022 but is due to be reduced to its previous level of £125,000 from April 1. If you’re a first-time buyer in England and Wales, you pay stamp duty if the property you’re buying is worth over £425,000 – but this will go back down to £300,000 from April 1.
You can use our stamp duty calculator below to see exactly how much these changes could cost you, whether you’re moving home, or if you’re a first-time buyer. This calculator is for properties in England and Northern Ireland. There is a different stamp duty system for Scotland and Wales.
This last day to complete on a house sale before stamp duty changes is March 31 – but new figures from Rightmove suggest 74,000 buyers in England will miss this deadline. You pay stamp duty based on the portion of the property value where it is chargeable. Let’s say you’re buying a property for £350,000 and you’re not a first-time buyer.
Under current rules, you would pay no stamp duty on the first £250,000, then 5% on the part that is worth between £250,001 and £350,000. This means your stamp duty bill would be £5,000. However, after April 1, the stamp duty due on this home would jump to £7,500. This is because there would be no stamp duty due on the first £125,000, then you would pay 2% on the part that is worth between £125,001 and £250,000, and 5% between £250,001 and £350,000.
You need to pay stamp duty within fourteen days of completing a property purchase. Your solicitor can arrange to make the payment for you. It may also be possible to add stamp duty to your mortgage – but this does mean you are borrowing more which can affect your affordability.
How is stamp duty changing?
Here are the current stamp duty rates in England and Northern Ireland that will remain in place until March 31, 2025:
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Purchase price – up to £250,000 (£425,000 for first-time buyers) ; Rate for main residence – 0%
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Purchase price – £250,001 to £925,000 ; Rate for main residence – 5%
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Purchase price – £925,001 to £1,500,000 ; Rate for main residence – 10%
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Purchase price – £1,500,000 and above ; Rate for main residence – 12%
Here is howstamp duty rates will change in England and Northern Ireland from April 1, 2025:
- Purchase price – up to £125,000 (£300,000 for first-time buyers) ; Rate for main residence – 0%
- Purchase price – £125,001 to £250,000 ; Rate for main residence – 2%
- Purchase price – £250,001 to £925,000 ; Rate for main residence – 5%
- Purchase price – £925,001 to £1,500,000 ; Rate for main residence – 10%
- Purchase price – £1,500,000 and above ; Rate for main residence – 12%
First-time buyers currently only benefit from reduced stamp duty rates if they buy a property worth £625,000 or less. This will reduce to £500,000 from April 1.
