How to Beat the Stamp Duty Increase
With the UK Stamp Duty Land Tax holiday coming to a close at the end of March, there’s plenty of buyers rushing around to beat the stamp duty increase!
With the UK Stamp Duty Land Tax holiday coming to a close at the end of March, there’s plenty of buyers rushing around to beat the stamp duty increase!
With the UK Stamp Duty Land Tax holiday coming to a close at the end of March, there’s plenty of buyers rushing around to beat the stamp duty increase! The ‘holiday’ was introduced by the government to boost the housing market during COVID-19 - but on the 1st of April 2025, Stamp Duty Land Tax will be returning to its original, higher rates.
In simple terms, Stamp Duty Land Tax is the amount of tax that you pay on land / property transactions. The amount of Stamp Duty Land Tax that you pay on your property varies depending on your situation, particularly if you’re a first-time buyer, or not.
In this blog, we’ll be shining a light on the upcoming changes, advising you on the best course of action to take so that you can try to move into your home before the stamp duty increase.
The Stamp Duty Land Tax increase will affect people differently, and it’s important to understand your own situation, and how much tax you’ll be liable for before the increase, and after. Please note that the new changes will not be increasing for any portion of the tax you pay over the £250,000 threshold, but they will still impact you.
You should budget for having to pay the higher amount of Stamp Duty Land Tax.
Currently, the standard stamp duty rates for a single property are tax free up to £250,000, however, as of the 1st of April, this will be reduced to £125,000. After this change, you will pay 2% stamp duty land tax on the portion from £125,001-£250,000.
For first time buyers, these rates differ dramatically. As of now, you don’t pay any stamp duty on the first £425,000 of your home. For houses valued between £425,001 to £625,000, you would pay 5%. For homes over this price range, first time buyers must follow the same rules for people who’ve bought a home before. After the 31st March, you will pay 0% stamp duty tax on the first £300,000, and 5% from £301,000 to £500,000, meaning first time buyers looking for homes over the £500,000 threshold must follow the standard rates.
There are various other situations where the amount of stamp duty land tax you’re liable for will differ. To learn more, we’d recommend you visit the UK Government's website for further information, and to use the SDLT calculator for an accurate sum of the tax you’ll owe to ensure you do not have any unexpected surprises.
If you’re reading this article, and you currently haven’t taken any steps to moving into your new home, you’ll need to act immediately if you want any chance to beat the stamp duty increase. If this is you, don’t panic, there are several steps you can take to give yourself the best chance of beating the deadline, which we will explore below:
First and foremost, you will need to make sure that you have all your finances ready to complete the purchase of your new home. You must ensure that the home you’re aiming to buy is realistic and within your means. We recommend that you should seek financial advice before making your decision.
The next step is to make sure that you have all your essential documents ready before you contact a solicitor. Gathering these documents early will allow your solicitor to get started sooner, reducing the time it takes to complete the conveyancing process.
Here is what you’ll need to provide your solicitor:
Proof of identity: Passport or driving license.
Proof of address: Recent bank statement, or utility bill.
Mortgage offer: Copy of your pre-approved mortgage offer.
Bank statements: Showcasing your current available funds/your source of funds.
Property information form: Details about the property.
Fittings and contents form: Specifies what fixtures and fittings are included in the sale.
Once you have your finances and documents prepared, you’ll need to contact us to ensure a smooth sailing process. You will benefit from reliability, and efficiency, when you instruct our award winning residential conveyancing team for your property matters. With over 70 years of experience, we bring high level expertise to every conveyancing matter.
If you’re looking to contact our skilled conveyancing team, click here.
Don’t hesitate to be honest and express the urgency of your situation to us.
You should make sure that you get your searches done as soon as possible, and book a survey at the earliest convenience, ensuring that there are no issues with the property you’re looking to buy.
During this period, you’ll need to be highly responsive, acting on anything we ask for as soon as you can, failure to do so can delay completion.
Essentially, plan for the worst case scenario to ensure you’re prepared to take on the financial liabilities that you’d face if you fail to beat the stamp duty increase. If you’re not financially prepared to take on a new home at the new stamp duty rates from 1st of April, then we would likely advise against the purchase of the home.
Hopefully you have a better understanding of your next steps if you’re looking to complete the purchase of your new home before the stamp duty increase. But remember, buying a home is one of life’s most important decisions, and it’s important to have reliable legal expertise on your side.
With time running out, don’t hesitate to get in touch with our trusted conveyancing team. We will work closely with you from start to finish with your best interests at heart, where you’ll receive personalised support from professionals that truly care.
Contact our team to get started today!
Email: Enquiries@freersaskewbunting.com Call: 01429 743300
