At the end of March 2025, stamp duty rates will revert to previous higher levels.
In September 2022, the government reduced stamp duty thresholds to regenerate the housing market. These thresholds will now go back to their former levels. Any house purchase which completes after 1 April 2025, will be subject to the higher rates of stamp duty.
The nil rate threshold currently at £250,000 will be halved to the previous level of £125,000. A £500,000 property which completes before 31st March 2025 would incur stamp duty at £3,750. After 1st April, this would rise to £10,000.
There is also a nil rate threshold for first time buyers which is now £425,000 but after the rates change, will return to the previous level of £300,000. In addition, first-time buyers’ relief which can be claimed on initial house purchases up to £625,000 will be limited to £500,000 in April.
