Stamp Duty Guide

Your guide to Stamp Duty

WHAT TO EXPECT FROM 1ST APRIL 2025

What is Stamp Duty Land Tax? Stamp Duty Land Tax (SDLT) is a tax levied by the government on property buyers when a sale is completed. The amount of tax payable is determined by the purchase price of the property and can be influenced by several factors, including: - Whether the buyer is a first-time buyer - The buyer’s ownership of other properties - The buyer’s residency status in the UK

Why is SDLT changing?

In September 2022, the Conservative Government implemented a temporary reduction in stamp duty to help lower the initial costs of buying a home. The goal was designed to support the housing market, support related industries, and assist those looking to get onto the property ladder.

While the measure was originally presented as a permanent change, the government confirmed in the Autumn Statement 2022 that the increased residential nil-rate threshold will end on 31 March 2025 and the SDLT rates will revert to their previous levels from 1st April 2025.

First Time Buyers First time buyers are able to claim a relief from SDLT if you and anyone else buying the property is a first time buyer.

Proportion of property value

Current rate

Up to £425,000

0%

£425,001 to £625,000

5%

Purchases above £625,000 cannot claim the relief and follow rules for people who’ve bought a home before Proportion of property value

New rate from 1st April 2025

Up to £300,000

0%

£300,001 to £500,000

5%

Purchases above £500,000 cannot claim the relief and follow rules for people who’ve bought a home before For example, a first time buyer purchase at £500,000 Up to 31st March 2025 = £3,750 From 1st April 2025 = £10,000 This is going to cost first time buyers a maximum of £3,750 if they buy beyond £500k then it will cost them substantially more as they have no relief at all, previously they had up to

£625,000.

Main Residences

The current nil-rate threshold of £250,000 will revert to its previous level of £125,000

Proportion of property value

Current rate

Up to £250,000

0%

The portion from £250,001 to £925,000

5%

The portion from £925,001 to £1.5 million

10%

The remaining amount above £1.5 million

12%

Proportion of property value

New rate from 1st April 2025

Up to £125,000

0%

The portion from £125,001 to £250,000

2%

The portion from £250,001 to £925,000

5%

The portion from £925,001 to £1.5 million

10%

The remaining amount above £1.5 million

12%

For example, a property with a value of £300,000 Up to 31st March 2025 = £2,500 From 1st April 2025 = £5,000 Basically this is going to cost buyers at all price ranges an extra £2,500.

Additional Properties

From 1st April 2025, a new band will be introduced to the stamp duty thresholds for additional property purchases.

Proportion of property value

Current rate

Up to £250,000

5%

The portion from £250,001 to £925,000

10%

The portion from £925,001 to £1.5 million

15%

Above £1.5 million

17%

Proportion of property value

New rate from 1st April 2025

Up to £125,000

5%

£125,001 to £250,000

7%

£250,001 to £925,000

10%

£925,001 to £1.5 million

15%

Above £1.5 million

17%

For example, a property with a value of £300,000 Up to 31st March 2025 = £17,500 From 1st April 2025 = £20,000 Basically this is going to cost buyers at all price ranges an extra £2,500 on top of the additional 2% that came into play after the last budget

How we are preparing for the SDLT change Effective communication is crucial in the house buying process, especially with the changing SDLT rules.

We are committed to complete transparency when setting expectations around the timeline of the sale, particularly for complex transactions such as those involving chains with multiple parties.

We are prioritising transactions impacted by the SDLT deadline, ensuring these cases are addressed promptly and in constant contact to ensure the buyer is fully aware of the situation.

Buying a house can be a stressful experience, but at Seymours, we’re here to ensure the process is as smooth and stress-free as possible. Whether it’s preparing for viewings, chasing up the sale of your property, or guiding you through the paperwork, we’re always here to support you every step of the way.

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If you are thinking of selling we would love to give you the benefit of our experience to help you move.

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