What do the 2025 Stamp Duty changes mean for homebuyers?

From the 1^st April 2025, if a home mover purchases a £400,000 property, they would pay £10,000, working out at:

• Nothing for the first £125,000 of the property value
• 2% between £125,001 and £250,000 (£2,500)
• 5% between £250,001 and £400,000 (£7,500)
• Meaning their total Stamp Duty charge would be £10,000

Before the changes on 1^st April 2025, the Stamp Duty due on a £400,000 property would have been £7,500, working out at:

• Nothing for the first £250,000
• 5% between £250,000 and £400,000 (£7,500)
• Meaning the Stamp Duty due would have been £7,500

Home movers would now need to spend £2,500 more Stamp Duty for a £400,000 property since the April 2025 changes.

From the 1^st April 2025, if a first time buyer purchases a £400,000 property, they would pay £5,000, working out at:

• Nothing for the first £300,000 of the property value
• 5% between £300,000-£400,000
• Meaning their total Stamp Duty charge would be £5,000

Before the changes on 1^st April 2025 a first time buyer would have had to pay £0:

• No Stamp Duty would have been payable on a £400,000 property for a first time buyer before the changes

First time buyers would now need to spend £5,000 more Stamp Duty for a £400,000 property since the April 2025 changes.

From 1^st April 2025, if a second home buyer purchases a £400,000 property, they would pay £30,000, working out at:

• 5% of the first £125,000 of the property value (£6,250)
• 7% between £125,001 and £250,000 (£8,750)
• 10% between £250,001 and £400,000 (£15,000)
• Meaning their total Stamp Duty charge would be £30,000

Before the changes on 1^st April 2025, the Stamp Duty due on a £400,000 second home purchase would have been £23,000, working out at:

• 5% for the first £250,000 (£12,500)
• 7% between £250,000 and £400,000 (£10,500)
• Meaning the Stamp Duty due would have been £23,000

Second home buyers would now need to spend £7,000 more Stamp Duty for a £400,000 property since the April 2025 changes.