Planning a property move? Better budget an extra £2,500 in stamp duty from April 2025 – yes, the taxman’s coming for a bit more of your house-buying budget!
Here’s how it works: stamp duty is calculated in bands, a bit like income tax. So you pay nothing in the first band, 5% in the next, with rates climbing all the way up to 12% for the portion above £1.5 million. And here’s the kicker – from April 2025, the zero-rate band is shrinking. Right now, you don’t pay any stamp duty on the first £250K, but that’ll drop to £125K. Translation? If you’re buying a place over £125K (which, let’s face it, is most properties with the average UK property now costing £293K), you’ll be paying more stamp duty next year than this year. For properties over £250K, expect to shell out an extra £2,500.
And first-time buyers? There’s no escaping the changes. The current perk is zero stamp duty on the first £425K and just 5% on the next bit up to £625K – ideal for those looking to buy in pricier spots like London. But from April, the zero-rate band for first-timers will dip to £300K, with the 5% rate covering £300K–£500K. Not the news you wanted if you were planning purchasing your first home for over £300K next year…
Second home purchases, however, face an even steeper hike: an increase from 3% to 5% on the additional stamp duty. And that’s on the whole property value! For those with property investments, myself included, this rise feels like a costly and unwelcome surprise, particularly as it took effect immediately. It’s caused chaos in the housing market, with investors pulling out of property chains. On a personal note, it’s added a few thousand pounds to my own upcoming completion bill – let’s just say I’m far from thrilled!
