It has now been three months since the government changed the Stamp Duty rules in England and Northern Ireland, and many homebuyers are still getting to grips with what it means for their budget.
On 1st April 2025, the temporary relief measures introduced during the pandemic came to an end. This means that for anyone buying a home now, the amount of tax you need to pay is likely higher than it would have been before April.
If you’re planning your move, it’s crucial to understand these costs. At Yes Mortgage Services Limited we want to make sure you’re fully prepared, with no nasty surprises. Here’s our simple guide to the current Stamp Duty system.
First, What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid on property purchases in England and Northern Ireland. It applies whether you are a first-time buyer, moving house, or buying an additional property like a buy-to-let. Your solicitor usually handles the payment for you after your sale completes.
What Changed on 1st April 2025?
The tax-free thresholds have been lowered, meaning you now start paying Stamp Duty on properties at a lower price point.
- For most buyers: The tax-free threshold was reduced from £250,000 to £125,000.
- For first-time buyers: The tax-free threshold was reduced from £425,000 to £300,000.
How Much Will I Pay Now?
Here are the current rates for anyone buying their main home:
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% |
Example: On a £295,000 home, the total Stamp Duty is now £4,750.
What About First-Time Buyers?
If you’re a first-time buyer, you still receive a discount, but the goalposts have moved.
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 (you pay standard rates) |
Example: A first-time buyer purchasing a property for £450,000 will pay £7,500 in Stamp Duty (5% on £150,000).
Buying a Second Property?
If you are buying an additional property, such as a holiday home or a buy-to-let, a 3% surcharge applies on top of the standard rates.
What if I’m Buying in Scotland or Wales?
The rules are different if you are buying elsewhere in the UK, as they have their own property taxes.
- Scotland (Land and Buildings Transaction Tax – LBTT): The tax-free threshold is £145,000. First-time buyers get relief up to £175,000.
- Wales (Land Transaction Tax – LTT): The tax-free threshold is higher at £225,000, but there is no specific relief for first-time buyers.
Plan Ahead to Avoid Surprises
The end of the Stamp Duty relief has had a real impact on the cost of moving. It’s essential to factor this tax into your budget from the very beginning.
An online Stamp Duty calculator is a good starting point, but the rules can be complex, especially if you own other properties.
How We Can Help
Navigating the costs of buying a home can feel overwhelming, but you don’t have to do it alone. At Yes Mortgage Services Limited, our team of advisers can provide a clear picture of all the costs involved, including Stamp Duty.
We have access to a comprehensive panel of lenders and can help you find the most suitable mortgage for your circumstances. And with no broker fees to worry about, we can help you budget with confidence.
Contact us today for a friendly, no-obligation chat about planning your next move.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
We do not charge a fee for mortgage advice.
Sources:
¹ Gov.uk (2025). Stamp Duty Land Tax. Available at: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates[Accessed 14 June 2025].
² Revenue Scotland (2025). LBTT Rates and Bands. Available at: https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-rates-and-bands [Accessed 14 June 2025].
³ Welsh Revenue Authority (2025). Land Transaction Tax rates and bands. Available at: https://www.gov.wales/land-transaction-tax-rates-and-bands [Accessed 14 June 2025].
All the information in this article is correct as of the publication date of 14th June 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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