Understanding Stamp Duty Changes: Why Now is the Time to Act
At Cullimore Dutton, we want our clients to stay informed, particularly when it comes to significant changes in property costs. One such change is the reduction in Stamp Duty Land Tax (SDLT) thresholds set to occur on April 1, 2025. These changes are expected to impact everyone planning a move, but first-time buyers will be particularly affected (these changes only affect properties in England).
Key Changes to Stamp Duty in 2025
From April 2025, the nil-rate threshold for first-time buyers will drop from £425,000 to £300,000. As a result, first-time buyers will go from paying no stamp duty on homes up to £425,000 to owing £6,250 on properties priced at £300,000. Additionally, the maximum price at which first-time buyers can claim reduced rates will also fall, from £625,000 to £500,000.
For non-first-time buyers and second homes, the standard rate thresholds will also change. These adjustments may significantly increase the costs of purchasing properties, especially those in the higher-value ranges.
Why You Should Consider Acting Now
Given these changes, now may be the ideal time to begin your property search. By purchasing a property before April 2025, you can avoid some of these higher costs associated with the new stamp duty rates. With a planned surge in demand before the new rates come into effect, it's important to act quickly.
Start looking now, and give yourself enough time to complete the purchase process. This will not only help you secure the right property but also ensure you save on stamp duty costs before the rates increase.
For more detailed information on the upcoming changes and how they might impact your property purchase, get in touch and let us help you navigate these changes and make the best decisions for your future.