Don’t miss this opportunity to prepare for the upcoming Stamp Duty changes in April 2025. These changes could significantly affect your property investments or home purchases. The good news is that you don’t need to navigate Stamp Duty changes on your own. Our experienced property accountants will walk you through the updates and how they might impact your finances.
Understanding Stamp Duty
When you buy new land or property in England, the HMRC charges you Stamp Duty Land Tax or simply Stamp Duty. This tax also applies to land or property purchases in North Ireland. The amount you pay depends on various factors and your unique circumstances, such as whether you’re a UK resident, buying property as a company or an individual, or a first-time buyer. Likewise, the HMRC considers whether you’re buying additional property or replacing your main residence.
What are the current and upcoming rates?
The Government announced the short-term Stamp Duty increase in September 2022, but it will end on March 31, 2025. If you buy a property and complete the sale after that date, it will be subject to the new rates.
Here’s a breakdown of the current and upcoming Stamp Duty rates for UK residents replacing their main residential freehold property:
Current Stamp Duty rates (until March 31, 2025):
- 0% on the first £250,000 of the property’s value
- 5% on the portion between £250,000 and £925,000
- 10% on the portion between £925,000 and £1.5 million
- 12% on the portion above £1.5 million
New Stamp Duty Rates (effective from March 31, 2025):
- 0% on the first £125,000 of the property’s value
- 2% on the portion between £125,000 and £250,000
- 5% on the portion between £250,000 and £925,000
- 10% on the portion between £925,000 and £1.5 million
- 12% one on the portion above £1.5 million
What does it mean for property buyers?
The new Stamp Duty rates will likely make buying a property more expensive because you’ll have to pay a higher percentage of the property’s value in taxes. Carefully assess your current and future financial situation to determine if you can afford the higher costs. Consider whether it’s more beneficial to buy a property now, before the new rates take effect, or wait until after March 31, 2025.
Allenby Accountants can help you navigate the changes with confidence.
It’s important to understand these changes and their impact on your plans to buy a new property — and your finances in general, especially if you are self-employed. No matter your circumstances, our property accountants will offer tailored advice to help you navigate the tax and financial implications of Stamp Duty changes in 2025.
Get in touch with us today at 0208 914 8887. You may request our property accountants to call you back.
