THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
MONEYWATCH FINANCE BUYING A HOME IN 2025?
HERE’S HOW STAMP DUTY HAS CHANGED
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If you’re planning to buy a home in England or Northern Ireland this year, there’s an important update you should know — stamp duty has increased.
From 1 April 2025, the government changed the rules, which means many home buyers will now pay more in stamp duty than they would have a few months ago.
Here’s a simple breakdown of what’s changed, who it affects, and what it means for your budget.
WHAT IS STAMP DUTY? Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property or land in England or Northern Ireland. It applies whether you’re:
• Buying your first home • Moving to a new one • Buying a second property (like a buy-to-let or holiday home)
You pay stamp duty after your sale completes—usually your solicitor will sort this for you—but it needs to be paid within 14 days.
WHAT CHANGED IN APRIL 2025? During the pandemic and economic uncertainty, the government increased the tax-free thresholds to make moving more affordable. That ended on 1 April 2025, so the thresholds are now back to where they were before.
Here’s what that means in real terms:
• You now start paying stamp duty on anything over £125,000 (it used to be £250,000)
• If you’re a first-time buyer, you now only get tax relief up to £300,000 (previously £425,000)
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• If your home costs more than £500,000, you get no first-time buyer discount at all
HOW MUCH WILL I PAY NOW? Here are the current rates for most buyers:
Property Price Up to £125,000
£125,001 – £250,000 £250,001 – £925,000 £925,001 – £1.5 million Over £1.5 million
Stamp Duty Rate 0% 2% 5%
10% 12%
FIRST-TIME BUYERS – WHAT’S CHANGED? If you’ve never owned a home before, you’ll still get a discount— but it’s not as generous as it was:
Price of Your First Home Up to £300,000
£300,001 – £500,000 Over £500,000
What You’ll Pay 0% stamp duty
5% on the part over £300,000 No discount at all
EXAMPLE: If you’re buying your first home for £500,000, you’ll pay £10,000 in stamp duty.
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