What is stamp duty?
Stamp duty is the tax charged by the Government when you buy a home of more than £250,000. However, the stamp duty thresholds will be changing so, if you move by 31st March 2025, you could save thousands.
Why do I need to pay it?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC – which they will only issue on receipt of the stamp duty due on the purchase of the property.
The transfer of funds to pay the stamp duty will be managed for you by your solicitor.
Move by 31st March 2025 to save thousands
If you purchase before 31st March 2025: For homes over £250,000 there is no stamp duty to pay on the first £250,000, then the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
0% (Zero) |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
If you purchase from 1st April 2025: The threshold for no stamp duty will be lowered. This means for homes over £125,000 there will be no stamp duty to pay on the first £125,000, then the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
0% (Zero) |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
What if I'm a first time buyer?
If you purchase before 31st March 2025: If you're a first time buyer, purchasing a home up to £625,000, the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £425,000 |
0% (Zero) |
|
£425,001 to £625,000 |
5% |
Note: For properties priced over £625,000, no additional first time buyer relief is available.
If you purchase from 1st April 2025: The threshold for no stamp duty will be lowered and the maximum cap will also be lowered. This means, if you're a first time buyer, purchasing a home up to £500,000, the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £300,000 |
0% (Zero) |
|
£300,001 to £500,000 |
5% |
Note: For properties priced over £500,000, no additional first time buyer relief will be available.
What if I'm an investor or own more than one property?
If you purchase before 31st March 2025: If you are buying an investment property or an additional home, the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
5% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |
If you purchase from 1 April 2025: If you are buying an investment property or an additional home, the following rates will apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
5% |
|
£125,001 to £250,000 |
7% |
|
£250,001 to £925,000 |
10% |
|
£925,001 to £1,500,000 |
15% |
|
Over £1,500,000 |
17% |
Buying in Scotland and Wales
Stamp duty in Scotland is referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000.
See more detail on LBTT (Scotland)
Stamp duty in Wales is referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £225,000.
Stamp Duty FAQs
-
Yes, stamp duty is payable on a new build property, just like any other property purchase.
-
It depends on the lender, but some may allow you to add stamp duty to your mortgage, although this will increase your overall mortgage payments and interest charges.
Our offers to help get you moving
Help to Sell Schemes
We have a range of schemes to help you sell your existing home.
Parent Power
Parents can also help. Typically they (or a close family member) could help you with your deposit, or guarantee your mortgage, or act as a joint applicant.
Low Deposit Schemes
If you have a low deposit, we have a variety of schemes to help make moving more affordable.
Key Worker Scheme
We could help make your move with our Key Worker Deposit Contribution Scheme.
Own New - Rate Reducer
Own New - Rate Reducer is a scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.
Part Exchange
We could be your guaranteed buyer. No stress or fuss, just an easy move for you and your family.
