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Stamp Duty Land Tax (SDLT) is set to change on 1st April 2025, impacting homebuyers across England and Northern Ireland. If you're planning to buy a property, these changes could mean paying thousands more in tax unless you complete your purchase before the deadline. If you're looking to buy a home or invest in property, now is the time to act.
In this guide, we'll break down the new Stamp Duty rates, compare them with the current structure, and offer expert tips on how to avoid paying more tax.
Here’s a breakdown of the key changes:
If you're buying a home worth £300,000, here’s how much you’ll pay before and after the deadline:
As shown, standard buyers will pay an extra £1,000 in tax after April 2025, and investors will also face higher costs.
Time is of the essence. If you’re planning to purchase a property, acting swiftly could save you a significant amount in Stamp Duty. Here are some practical tips:
Finalise your mortgage application and instruct your solicitor as soon as possible. By closing the deal before 31st March 2025, you can lock in the current, lower SDLT rates.
Get professional advice to streamline your mortgage application and speed up the buying process.
Accurately estimate your potential Stamp Duty costs with our trusted tool. Stay informed about your tax liability before making a purchase. Try our Auction Finance Stamp Duty Calculator!
If you’re not in a rush, consider whether delaying your purchase until after the changes might benefit you – though, for many, the risk of increased costs outweighs the benefits.
Take advantage of the current rates while planning your purchase strategy carefully. Consulting a financial advisor can help you understand how these changes affect your long-term financial planning.
Investors and those purchasing additional properties should note that the additional 5% surcharge will still apply, regardless of the new thresholds. This means that even if part of the property value falls within a tax-free band, the surcharge will still be added to your total tax bill. Consider the following points:
The extra 5% on top of the revised rates means that investors might face a more significant increase in their tax liability.
As with primary residences, completing the transaction before 31st March 2025 can help avoid the more expensive rate structure.
Reassess your investment strategy – the increased tax may influence the profitability of your property investment portfolio.
The upcoming changes to Stamp Duty Land Tax on 1st April 2025 will have a broad impact on the UK property market – affecting first-time buyers, standard homebuyers, and property investors alike. With the tax-free thresholds dropping and the additional surcharges remaining in place, the potential for higher tax bills is clear.
If you’re in the market for a property, the key is to plan ahead and act quickly. Securing your mortgage and completing your purchase before the deadline can help you avoid unnecessary costs. Whether you’re a first-time buyer or an investor, getting professional advice from a mortgage expert or financial advisor can make a significant difference in navigating these changes.
Need to beat the deadline? Get in touch with our dedicated team from Auction Finance today to discuss how we can support your mortgage application and help you secure the best possible deal before the new rates come into force.
Yes, if you’re buying a property as your main residence and its price exceeds £125,000 after April 2025, you’ll be liable for the new rates.
There are several online calculators available that factor in the new and current thresholds. Consulting with a tax advisor can also provide personalised guidance.
If you don’t complete your purchase by 31st March 2025, the new, higher rates will apply, potentially increasing your overall costs significantly.
(C) 2025 Auction Finance is a trading name of Mortgage Knight Ltd