Stamp Duty thresholds changed in April 2025, which means steeper costs for anyone buying a property.
Stamp Duty thresholds were originally amended by the previous government in Liz Truss’s disastrous 2022 mini-Budget. The changes unveiled then meant there was no Stamp Duty to pay on the first £250,000 of any property purchase (up from £125,000). For first-time buyers, the Stamp Duty threshold was raised from £300,000 to £425,000, and the value of the property on which first-time buyers could claim relief also rose from £500,000 to £625,000. These changes were among very few measures which were left unaltered by Jeremy Hunt when he succeeded Kwasi Kwarteng as Chancellor.
However, the increase in Stamp Duty thresholds was only ever intended to be temporary, and the new Labour Chancellor Rachel Reeves stuck to the planned timetable, so they finished at the end of March 2025.
Here, we explain what the changes could mean for you, and how second homebuyers have faced higher Stamp Duty bills for months already.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
How much is Stamp Duty in 2025?
Different Stamp Duty thresholds and rates apply depending on whether you are a first-time buyer or a home-mover, or if you’re already a homeowner and are buying an additional property.
Stamp Duty thresholds for home-movers
Home-movers previously didn’t have to pay any Stamp Duty on the first £250,000 of a property purchase.
However, following this April’s changes, only the first £125,000 of a property purchase is now free from Stamp Duty, with a 2% rate charged from £125,000 to £250,000. The reintroduction of the 2% band for stamp duty means that home movers will pay up to £2,500 more on their tax bill. For example, someone buying a property for £700,000 now will face a Stamp Duty bill for £25,000, £2,500 more than they would have paid if they had bought before April 2025.
If you need help working out how much Stamp Duty you’ll need to pay, the Government’s Moneyhelper service has a useful Stamp Duty calculator which can crunch the numbers on your behalf.
Stamp Duty thresholds for first-time buyers
There are special Stamp Duty rules for first-time buyers which have also changed in April 2025, and could mean more people will need to turn to the Bank of Mum and Dad to help them get onto the property ladder
Previously, first-time buyers benefited from reduced Stamp Duty rates when buying a property costing £625,000 or less. No Stamp Duty at all was payable on the first £425,000 of the value of the property, and after that, buyers had to pay 5% Stamp Duty on any remaining amount up to £625,000.
However, now that the old Stamp Duty thresholds have been reinstated, only the first £300,000 of the property value is now Stamp Duty-free for first-time buyers, with 5% Duty payable on any remainder up to £500,000.
Laura Suter, director of personal finance at AJ Bell, said: “It means a first-time buyer purchasing a property at the current limit of £625,000 will face a £11,250 hike to their stamp duty bill from April, as they’re no longer eligible for the first-time buyer tax break.”
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
Impact on the Bank of Mum and Dad
Many first-time buyers may miss the deadline, and consequently might need to turn to parents or grandparents to help them cover higher Stamp Duty bills.
Ben Waugh, Managing Director of more2life, said: “Currently, around 1 in 10 families, when releasing equity from their home, do so to gift money to family, a figure we expect to grow as a result of the Budget changes.”
You can find out more in our article Can I take money out of my property to give to my children? Bear in mind that if you are considering equity release as a way to help family onto the property ladder, it definitely won’t be right for everyone, as it can affect any means-tested benefits you receive and will also reduce the value of any inheritance you’d planned to leave, so it’s essential to seek professional financial advice first.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
Second home buyers already paying more
If you buy an additional property in England or Northern Ireland, which is worth £40,000 or more, you’ll already be charged 5% extra on top of the normal Stamp Duty rates, up from 3% before the October 2024 Budget. These changes came into effect on October 31, 2024, so they affect anyone purchasing a second property now.
Stamp Duty charges for those purchasing second homes are tiered as follows (old rates are shown in the middle column).
Property value of additional property | Stamp duty old rate | Stamp duty new rate |
Up to £250,000 | 3% | 5% |
The portion from £250,001 to £925,000 | 8% | 10% |
The portion from £925,001 to £1.5 million | 13% | 15% |
The portion above £1.5 million | 15% | 17% |
The additional tax is not payable if your second home is a caravan, mobile home or houseboat.
Bear in mind that you will also need to pay the additional charge if you buy your new home before you’ve sold the previous one because, for a short time at least, you’ll own two homes. You may be able to claim the additional tax back via your self-assessment tax return.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
Remember other home-buying and selling costs
Stamp Duty isn’t the only cost you’ll face when buying a property. You’ll also need to factor in conveyancing costs, legal fees, and any survey you plan to have.
You can find out more about all these costs in our guide How much does it cost to move house?
If you’re thinking of putting your property up for sale in the New Year, you can see which agents will do the best job of selling your home, based on past performance, using the GetAgent.co.uk* website.
Rest Less Money is on Instagram. Check out our account and give us a follow @rest_less_uk_money for all the latest Money News, updated daily.