Stamp Duty rates will revert soon
If you’re a first time buyer planning on buying a property for over £300,000, you could save thousands by legally completing on the property you’re purchasing before the 1st April.
Back in September 2022, the Government rolled out a temporary change to the Stamp Duty Land Tax, particularly benefitting first time buyers (First Time Buyers’ relief). Currently first time buyers pay 0% Stamp Duty when buying a home worth up to £425,000.
From the 1st April 2025, the thresholds will go back to what they were before.
What does this mean?
From 1st April 2025, first time buyers will pay 0% on their first home purchase up to the value of £300,000, and 5% Stamp Duty tax on any amount between £300,001 - £500,000 when the transaction completes. For example, if you buy a property for £400,000, you’d pay 0% on the first £300,000, then 5% on the amount above £300,000 – or £5,000 – in Stamp Duty tax.
This means if you’re planning on buying your first property and it’s over £300,000, you should act quickly as it could save you thousands!
Sounds like plenty of time?
The average home purchase takes around 3 months, but first time buyers are often at the mercy of the chain above and it can take 6 months or even longer to complete.
Starting the process now will give you the best chance of beating the Stamp Duty rise, so get your Mortgage in Principle to find out how much you could borrow today.
Last chance for first time buyers to save £1000s’
Stamp duty rates are set to revert on the 1st April 2025.
Will I have to pay Stamp Duty?
If you’re not sure how much your first home could cost, it’s helpful to look at average house prices in your area. Based on a UK House Price index in July 2024, if you’re thinking of buying your first home in the South East, the South West, or the East of England, you’re more likely to have to pay Stamp Duty tax from 1st April 2025. The majority of homes in England are currently free from Stamp Duty for first time buyers (58%) but this is set to drop to 37% if the old thresholds return.²
Delaying your plans could cost you, so it could be time to take the first step.
When do I have to pay Stamp Duty?
You’ll have to pay Stamp Duty tax within 14 days of completion. Your solicitor will usually pay the tax on your behalf on the day of completion. You’ll therefore need to have the funds available as well as your deposit. If your purchase completes after the 31st March 2025,you should make sure you account for the additional Stamp Duty fees in your overall budget.
You might also be interested in
Why wait?
Get started today, tell us a bit about your circumstances and get your Mortgage in Principle.