First Time Buyer Stamp Duty Hike

From 1 April 2025, temporary reductions to Stamp Duty Land Tax (SDLT) thresholds will end.

At present, first-time buyers are exempt from Stamp Duty on the first £425,000 of a property’s value. However, starting next April, first-time buyers will face Stamp Duty on property purchases exceeding £300,000.

First time buyers purchasing a home over £500,000 will no longer benefit from any first time buyer’s relief. This threshold is currently £625,000.

Consequently, an estimated 20% more first-time buyers will become subject to the tax, according to the estate agency Hamptons.

If your transaction is completed by 31 March 2025, you will still qualify for the relief and will only pay stamp duty on any portion of the property’s value that exceeds £425,000.

For instance, a first-time buyer purchasing a £400,000 property currently pays no Stamp Duty. After 31 March 2025, they will owe £5,000. For a £550,000 property, a first-time buyer currently pays £6,250 in Stamp Duty, but this will rise to £17,500 after 31 March 2025.

For parents hoping to help their child establish a footing on the property ladder, now may be an opportune time to realise savings of up to £11,250 on Stamp Duty. Speak to a financial adviser about planning to help your child buy their first home, in the context of tax planning, estate planning, and your wider financial objectives.

Following the biggest set of tax increases in modern history, it’s an opportune moment to evaluate your family’s financial situation and objectives.

We encourage you to contact us, to ensure you are fully utilising all available allowances this year, and that you are adequately protected from risk, as far as possible, including any risk resulting from these changes.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.