Stamp duty relief thresholds will be changing from 1 April 2025 reducing to £300,000 for first-time buyers and £125,000 for home movers which will see more stamp duty being paid.
How much stamp duty will you pay?
Completing on a property before April 1st 2025, could mean stamp duty savings. So act fast by booking an advice meeting with one of our experienced property experts today.
Bank of England cuts bank base rate to 4.75%!
Base rates have been cut for the second time this year by 0.25% meaning they are at their lowest level for more than a year. The base rate also affects the interest rates that lenders charge borrowers.
Interest rates, the budget and stamp duty – everything you need to know
The Bank of England has cut the bank base rate to 4.75% for the second time this year. This mean interest rates are at their lowest level for more than a year. The base rate also affects the interest rates that lenders charge borrowers so you will have access to all the latest deals as soon as they are announced.
The recent budget has confirmed new stamp duty relief thresholds from 1 April 2025 to contribute to the government’s plan to raise £40bn for public spending. Stamp duty has to be paid within 14 days of completing on a residential purchase and raises millions of pounds each year. The announced changes will make buying a first property or moving up the property ladder more expensive for first-time buyers and home movers, however, there are savings if you complete your purchase before this deadline. Buyers of brand new properties will also be subject to the same stamp duty changes from next April, although housebuilders often offer a range of incentives such as “stamp duty paid” for some developments.
Many first time buyers and existing homeowners living in parts of the country where the average price is nearer to the exemptions thresholds will still not pay stamp duty or it will be at a marginal rate. The effect of the changes will be felt more in the South East and London, where they could effect prices, although interest rates and inflation are expected to fall which could counteract the rises. Potential second home buyers and investor landlords will also see stamp duty rises on second homes at every threshold. If the outcome is fewer homes to rent this could lead to an uplift in rents and yields for landlords even though rents are at a historically high level. Capital Gains Tax on the sale of residential property remains unchanged at a 18% and 28%. Take a look at the figures below to understand the changes.
The discount for first time buyers to March 31st 2025 is:
• no SDLT up to £425,000
• 5% SDLT on the portion from £425,001 to £625,000
If the price is over £625,000, you cannot claim any relief, so you will need to follow the rules for people who’ve bought a home before.
The government has announced that the discount for first time buyers from April 1st 2025 will be:
• no SDLT up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000
If the price is over £500,000, you cannot claim the relief, so you will need to follow the rules for people who’ve bought a home before.
If you have owned a property before, the discount to March 31st 2025 is:
• no SDLT up to £250,000
• 5% SDLT on the portion from £250,001 to £925,000
• 10% SDLT on the portion from £925,001 o £1.5 million
• 12% SDLT on the portion above £1.5 million
The discount for property owning buyers from April 1st 2025 will be:
• no SDLT up to £125,000
• 2% SDLT on the portion from £125,001 to £250,000
• 5% SDLT on the portion from £250,001 to £925,000
• 10% SDLT on the portion from £925,000 to £1.5 million
• 12% on the portion above £1.5 million
If you are interested in finding out more about this or any other property related matter, reach out to your local Thomas Merrifield.
