Thousands of homebuyers in England urged to complete purchases before April 1

A considerable number of prospective homeowners are rushing to complete their property purchases ahead of a significant shift in stamp duty. Stamp duty is a tax that may be applicable when buying a property, depending on the property’s value, whether it’s your first home, and if it will serve as your main residence or an additional property.

The rates for stamp duty differ across England, Scotland, Wales, and Northern Ireland. As per the existing rules in England and Northern Ireland, stamp duty is payable if the property is your sole residence and its value exceeds £250,000.

This elevated rate was implemented in September 2022 but is due to revert back to its former level of £125,000 from April 1. Therefore, the final day to conclude a house sale before the stamp duty alterations is March 31.

For first-time buyers in England and Wales, stamp duty becomes applicable if the property being bought is valued over £425,000 – this threshold will drop to £300,000 from April 1. Property portal Rightmove predicts that 74,000 buyers in England will fail to meet the stamp duty deadline.

Stamp duty is charged based on the portion of the property value where it applies. For example, under the current regulations, if you’re purchasing a property worth £350,000 and you’re not a first-time buyer, you wouldn’t pay any stamp duty on the initial £250,000.

You would be obliged to pay a 5% stamp duty on the portion of the property valued between £250,001 and £350,000, which equates to paying 5% on £100,000. At present, the stamp duty bill for a property worth £350,000, for someone who isn’t a first-time buyer, is £5,000 – but this will increase to £7,500 after April 1.

This is because you would only pay zero stamp duty on the first £125,000, then you would pay 2% on the part that is worth between £125,001 and £250,000 (equivalent to paying 2% on £125,000) and 5% between £250,001 and £350,000 (equivalent to paying 5% on the remaining £100,000). For a property valued at £500,000, the current stamp duty bill is £12,500 – but this will rise to £15,000 from April 1.

If you’re a first-time buyer purchasing a property worth £350,000, you wouldn’t pay any stamp duty currently – but after April 1, you would be liable for £2,500. Stamp duty must be paid within fourteen days of purchasing a property.

Your solicitor can assist with this payment, or you can make it yourself online. It’s also possible to add the stamp duty to your if your lender agrees, but bear in mind this could affect your affordability and means you’ll be borrowing more, which will increase the amount of interest you repay over time.

How stamp duty is changing in England and Northern Ireland

Here are the current stamp duty rates in England and Northern Ireland that will remain in place until March 31, 2025:

• Purchase price – up to £250,000 (£425,000 for first-time buyers) ; Rate for main residence – 0%

• Purchase price – £250,001 to £925,000 ; Rate for main residence – 5%

• Purchase price – £925,001 to £1,500,000 ; Rate for main residence – 10%

• Purchase price – £1,500,000 and above ; Rate for main residence – 12%

How stamp duty rates will change in England and Northern Ireland from April 1, 2025:

• Purchase price – up to £125,000 (£300,000 for first-time buyers) ; Rate for main residence – 0%
• Purchase price – £125,001 to £250,000 ; Rate for main residence – 2%
• Purchase price – £250,001 to £925,000 ; Rate for main residence – 5%
• Purchase price – £925,001 to £1,500,000 ; Rate for main residence – 10%
• Purchase price – £1,500,000 and above ; Rate for main residence – 12%

How stamp duty is changing in Scotland and Wales

Stamp duty is known as land and buildings transaction tax in Scotland and the following rates apply:

• Purchase price – up to £145,000 (£175,000 for first-time buyers) ; Rate for main residence – 0%

• Purchase price – £145,001 to £250,000 ; Rate for main residence – 2%

• Purchase price – £250,001 to £325,000 ; Rate for main residence – 5%

• Purchase price – £325,001 to £750,000 ; Rate for main residence – 10%

• Purchase price – £750,000 and above ; Rate for main residence – 12%

In Wales, stamp duty is known as transaction tax and the current rates are applied to property purchases:

• Purchase price – up to £225,000 ; Rate for main residence – 0%

• Purchase price – £225,001 to £400,000 ; Rate for main residence – 6%

• Purchase price – £400,001 to £750,000 ; Rate for main residence – 7.5%

• Purchase price – £750,001 to £1,500,000 ; Rate for main residence – 10%

• Purchase price – £1,500,000 and above ; Rate for main residence – 12%