Understanding Stamp Duty
Are you planning to buy a new home and wondering how much “stamp duty” you'll need to pay? We have put together a short guide to help you understand what Stamp Duty is and the upcoming changes*!
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax payable when you buy a property or land over a certain price in England and Northern Ireland. The amount you pay depends on the property’s price and whether you are eligible for relief or an exemption. It applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.
How much is Stamp Duty?
SDLT starts to apply above £250,000, or £425,000 if you are a first-time buyer purchasing a home for less than £625,000 (this is due to change from 1 April 2025 – see below). If you buy a property below this amount, there is no SDLT to pay unless the property you are buying is additional to your main residence.
SDLT applies in tiers with different rates applying to different portions of the purchase price of the property. The current rates (until 31 March 2025) are:
| Purchase price | SDLT rate** |
| Up to £250,000 | Zero |
| The next £675,000 (£250,001 to £925,000) | 5% |
| The next £575,000 (£925,001 to £1.5m) | 10% |
| The remaining amount (over £1.5m) | 12% |
For example, if you buy a home for £300,000, you will pay nothing on the first £250,000 (at current rates) and 5% on the next £50,000.
SDLT is payable within 14 days of completion but your solicitor will normally deal with this for you and add the tax to your completion statement.
Upcoming changes to Stamp Duty
From 1 April 2025, SDLT will start to apply above £125,000, or £300,000 if you are a first-time buyer purchasing a home for less than £500,000. This means that from 1 April 2025, you will pay SDLT on more of the purchase price.
The new rates (from 1 April 2025) will be:
| Purchase price | SDLT rate** |
| Up to £125,000 | Zero |
| The next £125,000 (£125,001 to £250,000) | 2% |
| The next £675,000 (£250,001 to £925,000) | 5% |
| The next £575,000 (£925,001 to £1.5m) | 10% |
| The remaining amount (over £1.5m) | 12% |
For first-time buyers looking to buy a Gleeson home before 31 March 2025, it is likely no SDLT will need to be paid due to the affordability of our homes. The average price for a Gleeson home is £185,700***, making it easier to get on the property ladder.
Understanding SDLT and the recent changes can help you make informed decisions when buying a home. At Gleeson, we’re here to help you navigate these changes and find the perfect home for you. If you have any questions or need further assistance, don’t hesitate to reach out to one of our dedicated Sales Executives.
We have a number of homes ready to move into now, so we can help you make your move and beat the upcoming Stamp Duty increase. Click here to start your search.
* Please note that this is not a substitute for professional advice and you should still consult your solicitor or other professional advisers.
**Additional rates apply if you own more than one property. Please speak to your professional adviser.
***MJ Gleeson Annual Report for the year ended June 2024
