Moving home is an expensive process, and buyers will always want to cut costs and make savings where they can. Stamp Duty Land Tax is a tax that must be paid on purchases over a certain value and increases depending on the cost of your property.
Back in September 2022, the government revised the thresholds. This meant that a 3% reduction was made across the board, relative to the cost of your new home. Purchases up to the value of £250,000 were set at a nil percentage of Stamp Duty Land Tax so no Stamp Duty was paid on properties unless they were over this value.
This was seen as a relieving measure to help encourage more homeowners to move up the property ladder but was not intended as a permanent change.
In a statement given in November 2022, the then-Chancellor Jeremy Hunt said that these stamp duty cuts would not be permanent, and the measure would be revised. This was originally designed as a way to support the housing market at the time, but this temporary measure comes to an end very soon.
As of 1st April 2025, the nil-tax percentage will only apply to properties valued at less than £125,000. Current government guidelines suggest that the rates will revert to what they were before the changes were made in September 2022, which was set at 2% on properties between £125,001-£250,000. However, this may change under the new Labour government.
According to Zoopla, the average price of a home in Stoke-on-Trent in the last 12 months is £164,107 – if the government guidelines revert back to the changes prior to September 2022, the stamp duty for a property selling at this price will be 2% from the 1st April 2025.
Rachel Silvester, Director and Head of Residential Conveyancing, says: “If you plan on buying a new property, it is best to decide when you plan to move and be conscious of the changes to Stamp Duty. You should always budget for this and speak to your solicitor about how much this could cost you.”
First time buyers should be especially wary of these changes, as the First Time Buyers’ Relief threshold was also increased, from £300,000 to £425,000. When this reverts back to the previous rates, it could mean you pay more Stamp Duty.
Our top advice is to keep this high on the priority list and be mindful when buying or selling a property. Transactions can take time to complete, and it is best to keep in mind that completion dates are not legally binding until the exchange of contracts. Your completion date will affect the amount of Stamp Duty you pay.
At Myers & Co, our expert solicitors can advise on all costs involved in the purchase of your new home and help you budget. For further information, please contact Rachel Silvester in the Residential Property & Conveyancing team on 01782 491025 or email rachel.silvester@myerssolicitors.co.uk. Myers & Co Solicitors has offices in Stoke-on-Trent, Staffordshire.
