Barbers are advising all First Time Buyers to be aware of the forthcoming changes to Stamp Duty Land Tax in 2025 - buying a property now will help towards saving a signifcant amount of money towards your first home.
Stamp Duty rates are changing from 1st April 2025, when the temporary increases to the thresholds, that were put in place in September 2022, are due to come to an end. Whilst this change will impact everyone planning to move, it's first-time buyers who will be the most affected.
Currently first-time buyers pay no stamp duty when buying a home worth £425,000. This threshold will drop to £300,000, meaning they will go from paying nothing to paying up to £6,250 on stamp duty.
In the article below we’ll explain these changes in more detail, how this could affect your move, and work out how much it could cost you, by using the Government Stamp Duty calculator:
Stamp Duty Land Tax: Residential property rates - GOV.UK
Stamp duty, is a government tax which is paid by the buyer of a property, as a lump sum upon completion. It is paid by buyers who are purchasing a property or land over a certain price bracket.
The amount of SDLT liability depends on several factors, including (but not limited to) whether a buyer is:
- A UK resident
- Purchasing a property as an individual or company
- A first-time buyer
- Replacing a main residence
- Purchasing additional property
These stamp duty changes are likely to have the most impact on first-time buyers. By reducing the nil rate threshold by £125,000 and reducing the maximum purchase price for which first-time buyers’ relief can be claimed by the same amount, it could make it even harder for some first-time buyers to get onto the property ladder.
From 1st April 2025, first-time buyers won’t pay stamp duty on properties up to only £300,000, and they’ll only get first-time buyers’ relief on properties up to £500,000 (5% on properties £300,000 to £500,000).
Whereas, currently, if you’re a first-time buyer you don’t pay any tax on properties up to £425,000, and if the cost of the property you’re buying is up to £625,000 you’re also eligible for discounted rates (5% on properties from £425,001 to £625,000).
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