We covered First Time Buyers last week (see the latest updates page if you missed it!), so we wanted to run through the changes for standard residential purchases (i.e. it’s the only residential property you own).
As it stands now until 31st March 2025 the Stamp Duty you would pay if you will only own one residential property is:
- 📊No stamp duty up to £250,000
- 5% charged on the portion from £250,001 to £925,000
- 10% charged on the portion from £925,001 to £1.5 million
- 12% charged on the portion above £1.5 million
For example, if you buy a house in November 2024 for £395,000, the stamp duty will be calculated as follows:
- 0% on the first £250,000 = £0
- 5% on the final £145,000 = £7,250
- Total stamp duty to pay £7,250
From 1st April 2025 the rates will change to:
- 📊No stamp duty up to £125,000
- 2% on the portion from £125,001 to £250,000
- 5% on the portion from £250,001 to £925,000
- 10% on the portion from £925,001 to £1.5 million
- 12% on the portion above £1.5 million
Using the same example if you buy a house from 1st April 2025 for £395,000, the stamp duty will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second portion of £125,000 = £2,500
- 5% on the final portion of £145,000 = £7,250
- Total stamp duty to pay £9,750
This is of course more stamp duty, but may not be quite as scary as it first sounds.
As always, we are here for all your mortgage or insurance needs.
