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Understanding the New Stamp Duty Rates for 2025

Buying a home in England or Northern Ireland? How much will stamp duty be from April 2025? The rates are changing significantly, and homebuyers need to understand these new thresholds to plan their purchases effectively.

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax, commonly known as stamp duty, is a tax you pay when purchasing property in England and Northern Ireland. The amount varies based on the property price and your buying circumstances.

The New Standard Rates

From April 1st, 2025, the standard stamp duty rates will follow a tiered system:

For properties up to £125,000, you’ll pay no stamp duty at all. This is a significant change from the previous threshold of £250,000.

For the portion between £125,001 and £250,000, you’ll pay 2% in stamp duty.

The next portion, from £250,001 to £925,000, will be taxed at 5%.

For the amount between £925,001 and £1.5 million, you’ll pay 10%.

Any remaining amount above £1.5 million will be taxed at 12%.

Understanding This With an Example

Let’s look at a practical example: If you purchase a property for £295,000 in April 2025, your stamp duty would be calculated as follows:

• First £125,000: £0 (zero tax)
• Next £125,000: £2,500 (2% tax)
• Final £45,000: £2,250 (5% tax)
• Total stamp duty: £4,750

Special Considerations for First-Time Buyers

First-time buyers receive special treatment under the new rules. From April 2025, they will:

• Pay no stamp duty on the first £300,000 of their purchase
• Pay 5% on amounts between £300,001 and £500,000
• Lose this benefit entirely if the property costs more than £500,000

Additional Property Purchases

If you’re buying an additional property, you’ll need to pay an extra 5% on top of the standard rates. This applies to second homes and buy-to-let properties.

Non-UK Residents

Non-UK residents face an additional 2% surcharge on top of the standard rates when buying residential property in England or Northern Ireland.

So, how much will stamp duty be from April 2025? The answer depends on your specific circumstances, but for most buyers, it represents an increase from the previous rates. Understanding these changes now can help you plan your property purchase more effectively and budget accordingly.

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