Stamp Duty rates will rise from April 1, 2025 (Image: Getty)
Households across the UK are being warned they face an extra £2,000 charge within weeks following a rule change by .
confirmed in the Autumn Budget last year that stamp duty rates will revert to previous levels from April 2025, meaning increased costs for both and current homeowners looking to move.
In September 2022, the Conservative government introduced a temporary increase to the thresholds above which stamp duty must be paid to lower the upfront costs of moving house, but this is due to end on March 31 this year.
It means that any transactions completed after this date will now be subject to the increased rates of stamp duty, resulting in thousands of pounds of extra costs for homebuyers.
In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second £125,000 = £2,500
- 5% on the final £45,000 = £2,250
- total SDLT = £4,750
Data from Zoopla’s conveyancing service shows that the changes could leave first-time buyers in some regions of the UK facing stamp duty increases of up to £11,250 on average, while those buying a home that is not their first face increased costs of around £2,000 on average.
So if you already own your home and are planning to move after April this year, you’ll face added charges of around £2,000 more on average than you would have paid if you moved before the end of March.
The new stamp duty land tax rates (SDLT) on the following property, lease premium or transfer value veles from April 1, 2025 are as follows:
-
Up to £125,000 – Zero tax
-
The next £125,000 (the portion from £125,001 to £250,000) – 2% tax
-
The next £675,000 (the portion from £250,001 to £925,000) – 5% tax
-
The next £575,000 (the portion from £925,001 to £1.5 million) – 10% tax
-
The remaining amount (the portion above £1.5 million) – 12% tax
As an example, under the current rates up to March 31, 2025, if you buy a house for £295,000 the SDLT you owe will be:
-
0% on the first £250,000 = £0
-
5% on the final £45,000 = £2,250
-
total SDLT = £2,250
By comparison, if you buy a house for £295,000 from April 2025 onwards, the SDLT you owe will be:
-
0% on the first £125,000 = £0
-
2% on the second £125,000 = £2,500
-
5% on the final £45,000 = £2,250
-
total SDLT = £4,750
This represents an increase in stamp duty of £2,500.
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With the April deadline approaching, property expert Owen Rogers, product director at Zoopla’s conveyancing service, says savvy buyers still have a chance of beating the costs and complete in time if they act by the start of February.
Mr Rogers says confirming your offer early and choosing the right conveyancer are key factors in ensuring you fast-track the conveyancing process and avoid paying more in stamp duty.
He explains: “The earlier you can confirm your offer, the quicker your conveyancing process will be. Many homebuyers make the mistake of starting the conveyancing process without a clear picture of their financial situation. By obtaining a pre-approval or ensuring you have your funds available well in advance, you can avoid unnecessary delays.
“Work closely with your financial advisor or broker to get your paperwork in order early. Having everything lined up from the outset ensures that once the offer is made, you’re ready to proceed without delays.
“One of the most significant factors that influences how quickly your conveyancing process progresses is who you choose to handle your transaction. An experienced conveyancer with a good track record of meeting deadlines can make all the difference.
“A good option could be to use to select a vetted conveyancer. The service is proven to speed up the process, takes just 60 seconds to find a trusted UK conveyancer, and includes a free money-back guarantee.”