When buying a property or land in England Stamp Duty Land Tax , usually referred to as Stamp Duty, is a tax payable to the Government by the buyer.
The amount of Stamp Duty that has to paid is dependent primarily on the purchase price but can also vary depending on whether the buyer is a first time buyer, a UK or foreign resident, an individual or company, purchasing a main residence or an additional property.
The rate of Stamp Duty payable on a residential purchase of a freehold property for an individual that is UK resident and replacing a main residence is as follows:
0% up to £250,000
5% above £250,000 and up to £925,000
10% above £925,001 and up to £1, 500,000
12% above £1,500,001
On 31 March 2025 the rate of Stamp Duty payable will change. Many buyers completing a purchase on or after 31 March 2025 will pay more Stamp Duty than they would if the transaction had completed before that date.
From 31 March 2025 the Stamp Duty rates on a residential purchase of a freehold property for an individual that is UK resident and replacing a main residence will be as follows:
0% up to £125,000
2% above £125,001 and up to £250,000
5% above £250,001 and up to £925,000
10% above £925,001 and up to £1,500,000
12% above £1,500,001
We have set out below some before and after examples of the amount of Stamp Duty that will payable before and after 31 March 2025.
The examples given are based on average property prices in Newcastle upon Tyne in the last twelve months and assume the transaction is a residential purchase of a freehold property for an individual that is UK resident and replacing a main residence:
Flat with a purchase price of £142,072
£0 (before 31 March 2025)
£341 (after 31 March 2025)
Terraced house with a purchase price of £215,494
£0 (before 31 March 2025)
£1,809 (after 31 March 2025)
Semi-Detached with a purchase price of £229,812
£0 (before 31 March 2025)
£2,096 (after 31 March 2025)
As should be clear by completing a transaction before the Stamp Duty changes come into effect a buyer can save a significant substantial sums of money.
First time buyers currently pay Stamp Duty at a rate of 0% on properties with purchase price up to £425,000. From 31 March 2025 this 0% rate for First Time Buyers will reduce to £300,000. This is likely to result in first time buyers having even greater difficulty taking the first step on to the property ladder.
The latest information on Stamp Duty can be found on the Government’s website.
The Government also provides a useful Stamp Duty calculator which can be found here.