# What the end of Stamp Duty holiday will mean for homebuyers

Posted 29/11/2024 by [Your Move](/blog/authors/marketing-team)

Changes to Stamp Duty in April 2025 - what does this mean for buyers? Find out what it means for first-time buyers, home movers, investors and landlords looking to expand their portfolio.

   ![Family](https://www.your-move.co.uk/uploads/blog_post/12_1332_s.jpg?v=164546) Stamp Duty rules are changing in April 2025 in England and Northern Ireland, potentially costing first-time buyers, home movers, and investors/owners of more than one property thousands of pounds.

However, you can avoid these added costs by moving into your new home or completing a new purchase before March 31, 2025.

[Try our Stamp Duty Calculator to see how much you will pay today](/page/210)

## 
What is Stamp Duty?

- [Stamp Duty Land Tax](/page/224) (SDLT) is a mandatory tax that is applied when purchasing a property or land in England
- [Land and Buildings Transaction Tax](/page/1802) (LBTT) is a mandatory tax that is applied when purchasing a property or land in Scotland

To provide certainty to taxpayers, Land and Buildings Transaction Tax (LBTT) rates and bands will stay at the current level until 2026. First-time buyer relief will also remain in place.

## How do the changes impact first-time buyers?

Right now, first-time buyers in England don’t pay any stamp duty on homes priced up to £425,000. Starting next April, homes between £300,001 and £500,000 will incur a 5% stamp duty rate.

For example:

- Purchase price: **£350,000**
- Current Stamp Duty for first-time buyers: **£0**
- From April 1, 2025: **£2,500**

**From April 1, 2025, the 5% is applied to the £50,000 that is over the starting point of £300,001.**

If you're a first-time buyer in Scotland, you'd pay no LBTT on the first £175,000, then it’s 2% on £175,001 to £250,000, 5% on £250,001 to £325,000, 10% on £325,001 to £750,000, and 12% above £750,000.

For example:
• Purchase price: **£350,000**
• LBTT for first-time buyers: **£7,750** (includes £600 first-time buyer relief)

The 2% is applied to houses £175,000 up to £250,000 (= £1,500), and then you add a further 5% to go above £250,000 up to £325,000 (= £3,750), and then 10% from £325,001 to £750,000 (= £2,500). Total £7,750.

## How will the changes affect buying and selling your main home?

Right now, home movers in England don’t pay any stamp duty on homes priced up to £250,000. Starting next April, homes between £125,001 and £250,000 will incur a 2% stamp duty rate.

For example:

- Purchase price: **£350,000**
- Current stamp duty for home movers: **£5,000**
- From April 1, 2025: **£7,500**

**From April 1, 2025, the 2% is applied to houses £125,000 up to £250,000 (= £2,500), and then you add a further 5% to go above £250,000 up to £925,000 (= £5,000). Total £7,500.**

In Scotland, home movers pay no LBTT on the first £145,000, then it’s 2% on £145,001 to £250,000, 5% on £250,001 to £325,000, 10% on £325,001 to £750,000, and 12% above £750,000.

For example:
• Purchase price: **£350,000**
• LBTT for home movers: **£8,350**

The 2% is applied to houses £145,000 up to £250,000 (= £2,100), and then you add a further 5% to go above £250,000 up to £325,000 (= £3,750), and then 10% from £325,001 to £750,000 (= £2,500). Total £8,350.

## How will the changes impact investors or owners of more than one property?

Right now, in England, investors or purchasers who own more than one property pay 5% stamp duty on homes priced from £0 to £250,000. Starting next April, homes between £0 and £125,000 will incur a 5% stamp duty rate.

For example:

- Purchase price: **£350,000**
- Current Stamp Duty for investors, owners of more than one property: **£22,500**
- From April 1, 2025: **£25,000**

**From April 1, 2025, the 5% is applied to houses up to £125,000 (= £6,250), and then you add a further 7% to go above £125,000 up to £250,000 (= £8,750), adding an additional 10% to go above £250,000 and up to £925,000 (= £10,000). Total £25,000**

For Scotland, investors or owners of multiple properties pay 0% LBTT on the first £145,000; then it’s 2% on £145,001 to £250,000, 5% on £250,001 to £325,000, 10% on £325,001 to £750,000, and 12% above £750,000.

Buyers who already own property will also have to pay the Additional Dwelling Supplement (ADS) on top of LBTT, which is currently set at 8% of the total purchase.

For example:
• Purchase price: **£350,000**
• LBTT for investors, owners of more than one property: **£8,350**
• 8% ADS: **£28,000**
​• LBTT plus ADS for owners of multiple properties: **£36,350**

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To avoid these added costs, move into your new home or complete a new purchase before March 31, 2025.

Ready for a fresh start? Book a FREE, no-obligation property valuation to find out how much you could secure for your next home.

[Book a FREE property valuation](/page/1714)

[Your Move](/blog/authors/marketing-team)

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