Buying a Home in 2025? Here's How Stamp Duty Has Changed

If you're planning to buy a home in England or Northern Ireland this year, there's an important update you should know — stamp duty has increased.

From 1 April 2025, the government changed the rules, which means many home buyers will now pay more in stamp duty than they would have a few months ago.

Here’s a simple breakdown of what’s changed, who it affects, and what it means for your budget.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property or land in England or Northern Ireland. It applies whether you're:

• Buying your first home

• Moving to a new one

• Buying a second property (like a buy-to-let or holiday home)

You pay stamp duty after your sale completes—usually your solicitor will sort this for you—but it needs to be paid within 14 days¹.

What Changed in April 2025?

During the pandemic and economic uncertainty, the government increased the tax-free thresholds to make moving more affordable. That ended on 1 April 2025, so the thresholds are now back to where they were before.

Here’s what that means in real terms¹:

• You now start paying stamp duty on anything over £125,000 (it used to be £250,000)

• If you’re a first-time buyer, you now only get tax relief up to £300,000 (previously £425,000)

• If your home costs more than £500,000, you get no first-time buyer discount at all

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How Much Will I Pay Now?

Here are the current rates for most buyers²:

Property Price	Stamp Duty Rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1.5 million	10%
Over £1.5 million	12%

First-Time Buyers – What’s Changed?

If you’ve never owned a home before, you’ll still get a discount—but it’s not as generous as it was¹:

Price of Your First Home	What You’ll Pay
Up to £300,000	0% stamp duty
£300,001 – £500,000	5% on the part over £300,000
Over £500,000	No discount at all

Example:If you’re buying your first home for £500,000, you’ll pay £10,000 in stamp duty.

Buying a Second Property? There’s Extra Tax

If you already own a home and you’re buying another—like a buy-to-let or holiday home—you’ll pay an extra 5% on top of the normal rates¹.

This applies to properties over £40,000.

Real Examples

Example 1: Buying a £295,000 home (not a first-time buyer)

• 0% on the first £125,000 = £0

• 2% on the next £125,000 = £2,500

• 5% on the last £45,000 = £2,250

• Total = £4,750

Example 2: First-time buyer purchasing at £500,000

• 0% on the first £300,000 = £0

• 5% on the remaining £200,000 = £10,000

• Total = £10,000

What If You’re Buying in Scotland or Wales?

Stamp duty works differently in Scotland and Wales:

Scotland – You’ll Pay LBTT (Land and Buildings Transaction Tax)²

• 0% up to £145,000

• 2% from £145,001 to £250,000

• 5% from £250,001 to £325,000

• 10% from £325,001 to £750,000

• 12% above £750,000

• First-time buyers get 0% up to £175,000

• Buying a second home? Add 8% extra on top

Wales – You’ll Pay LTT (Land Transaction Tax)²

• 0% up to £225,000

• 6% from £225,001 to £400,000

• 7.5% from £400,001 to £750,000

• 10% from £750,001 to £1.5m

• 12% above £1.5m

• No first-time buyer relief

• Buying a second property? You’ll pay up to 17%, depending on the price

  
  

What Should You Do Now?

If you’re thinking about buying, don’t let stamp duty catch you by surprise. Here’s what I recommend:

• Check how much you’ll need to pay using the official calculator

• Add it to your total budget so you don’t get caught short later

• Get advice early, especially if you already own another property or are buying your first home

  
  

Need Help Working It All Out?

As a mortgage adviser, we help people like you plan your next move. If you’ve got questions about buying your first home, upgrading, or investing in property, we’re here to help.

References:

1.      Gov.uk (2025). Stamp Duty Land Tax. Available at: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates            [Accessed 23 Apr. 2025].

2.      BBC (2025). Stamp duty: What is it, how much is it and how is it changing?  Available at: https://www.bbc.co.uk/news/business-53319433     [Accessed 23 Apr. 2025].

All the information in this article is correct as of the publish date 27th March  2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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