For first time buyers this could have quite an impact if a sale goes through from 1st April 2025. 📈
Currently, if you meet the first time buyer criteria there is a discount on the Stamp Duty that you pay. As it stands now until 31st March 2025 the Stamp Duty for first time buyers is charged at the following rates:
- No stamp duty up to £425,000
- 5% charged on the portion from £425,001 to £625,000. (If the price is over £625,000, you cannot claim the discount)
🏠 For example, a first time buyer buys a house for £450,000, they will pay stamp duty on £24,999 (the difference between the exemption amount £425,000 and the purchase price) so this would equate to £1,249.95.
- From 1st April 2025 the rates for first time buyers will change to:
- No stamp duty up to £300,000
- 5% charged on the portion from £300,001 to £500,000. (If the price is over £500,000, you cannot claim the discount)
🏠Using the same example, a first time buyers buys a house for £450,000 they will pay 0% on the first £300,000, then 5% on the remaining £150,000 so tax payable of £7,500.
This is quite a jump!
If you were already thinking now is the time to buy, don’t hang about! If you would like to have a chat about how much you could borrow, give us a call or drop us an email, we are always here to help.
