We provide a wide range of legal services to individuals through our specialist teams of solicitors across our offices.
We provide a wide range of legal services to individuals through our specialist teams of solicitors across our offices.
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We provide a wide range of legal services to businesses through our specialist teams of solicitors across our offices.
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With the upcoming changes to the Stamp Duty Land Tax regime many people will be seeking to complete their property transactions before the 1st April 2025 to avoid being affected by the increased charges that some people will see.
The government has announced key alterations to Stamp Duty thresholds and tax rates that will come into force on 1st April 2025. These changes will increase the amount of Stamp Duty due on many property purchases.
The reduction in the nil-rate threshold for both standard residential properties and first-time buyers means that many buyers will face higher Stamp Duty bills. For example, a £275,000 property, which would currently incur no Stamp Duty for a first-time buyer, will attract an additional £2,500 in tax after 1st April 2025.
The tax bands above the nil-rate threshold will remain unchanged. This means that for homes above £125,000, Stamp Duty will be calculated according to the existing bands, with rates of:
For those purchasing additional properties, such as second homes or buy-to-let investments, the higher tax rates will apply. The 3% surcharge will remain, but with increased tax rates in the lower bands, this will impact investors more heavily.
If you are planning to purchase property in the near future, it is important to budget accordingly. This is because not only may a purchaser be affected by their own higher tax rates but, individuals within a ‘chain’ of transactions may be asked to increase their purchase price or drop their sale price to counter the higher rates. Those who complete their transactions on or before 31 March 2025 will benefit from the current, more favourable Stamp Duty rates.
If starting the process now you will need to act very quickly, and be very fortunate, to complete before the 1st April 2025.
We recommend that you act promptly if you’re looking to finalise your property purchase before 1st April 2025, as there is a limited window to complete transactions under the current Stamp Duty rates.
If you’re buying a residential property, whether it’s your first home or a second investment, our Residential Property team is here to help. Contact us on 01708 229444 to speak with a member of our team at any of our offices in Upminster, Brentwood, Hornchurch and Chelmsford.
The above is meant to be only advice and is correct as of the time of posting. This article was written by Paul Berry, Partner in the Residential Property Team at Pinney Talfourd LLP Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as of February 2025.