Did you know that stamp duty is an important revenue for the government, it pulled in £11.6bn in 2023-2024!
Many mortgage brokers have reported that people are pulling out of deals that are unlikely to complete before 31st March, and here’s why…
Let’s get down to the nitty-gritty – what do the changes on April 1st mean for you if you’re buying a property?
Current Stamp Duty Rates (Until 31st March 2025):
- £0 – £250,000 ( £425,000 for first-time buyers) = 0%
- The next £675,000 (the portion from £250,001 – £925,000) = 5%
- The next £575,000 (the portion from £925,001 – £1.5m) = 10%
- The remaining amount (the portion above £1.5m) = 12%
New Rates from 1st April 2025:
- £0 – £125,000 ( £300,000 for first-time buyers) = 0%
- The next £125,000 (the portion from £125,001 – £250,000) = 2%
- The next £675,000 (the portion from £250,001 – £925,000)= 5%
- The next £575,000 (the portion from £925,001 – £1.5m) = 10%
- The remaining amount (the portion above £1.5m) = 12%
Here’s what it really all means…
For example, if you manage to complete your property purchase for £295,000 before the 1st April 2025, you would pay £2,250 in stamp duty.
BUT…
If you purchase the property for £295,000 but complete after 1st April 2025, you would pay £4,750 in stamp duty.
Here’s a great online calculator to help crunch your own figures: Stamp Duty Calculator
What if you’re buying a second property?
You will be required to pay a higher rate fee in addition to the new rates. This includes if you are married or in a civil partnership, or if you are buying with another person.
The additional higher rates will not apply if you are both using the new property as your main residence, AND you have sold or given away your last main residence you owned before you buy a new home (or on the same day). The additional higher rates do not apply if the second property is worth less than £40,000, or is a mix of residential and non-residential.
Additional Higher Rates Payable from April 1st 2025
- Up to £125,000 you will pay an additional 5%
- The next £125,000 (the portion £125,001 – £250,000) = 7%
- The next £675,000 (the portion £250,001 – £925,000) = 10%
- The next £575,000 (the portion from £925,001 – £1.5m) = 15%
- The remaining amount (above £1.5m) = 17%
What if I sell my previous main residence?
Unless you sell it or give it away before buying another property (or on the same day) you will have to pay the higher rates. But if you sell your previous main residence within 3 years of buying your new home, you can apply for a refund. The refund will be on the higher-level part of your payment, and not a refund of the stamp duty payment in its entirety.
Do you work in the property industry?
If you’re looking for an extra pair of hands, you don’t need to take on the financial obligations of hiring staff. We have a team of customer service advisors able to answer your calls, deal with your enquiries, forward your calls, and even book in your appointments. Our team will act as though we’re an extension of your own, your callers will never know they haven’t reached your business directly. We’re a Brighton based small business with over 15 years experience supporting businesses within the property industry. To find out a little more about the services we other, just chat to a member of our team on 01273 741400 or visit our website.
