Home buyers in England and Northern Ireland will pay more stamp duty after 1 April, when two key thresholds are reduced.

Mortgage brokers have reported some potential buyers are pulling out of deals because they cannot complete before the end of March.

Stamp Duty Land Tax (SDLT) is a tax due if if you buy a property or land over a certain price in England and Northern Ireland, external.

You have to pay the tax when you:

The amount of stamp duty you owe depends on the cost of the property, whether it will be used for residential purposes, and whether you own any other property.

At the moment, buyers of homes worth less than £250,000 don’t pay any stamp duty.

This limit was temporarily doubled from the previous rate of £125,000 in the September 2022 mini-Budget.

The threshold for those buying their first property is £425,000, which was raised from £300,000 as part of the same mini-Budget. From 1 April, the threshold will revert to £300,000.

The current stamp duty rates are:

The new rates from 1 April 2025 will be:

If you already own a residential property worth £40,000 or more, and you buy another (or a part of one), you also have to pay an additional amount on top of the rates above, external.

From 1 April, this will be another 5% on properties worth up to £125,000, with higher rates for more expensive purchases.

Firms which buy dwellings worth more than £500,000 have to pay a single rate of stamp duty of 17%.

SDLT raised £11.6bn for the government in the 2023-24 financial year, external, down from £15.4bn in 2022-23.

Of this, £8.6bn was due to residential property purchases in 2023-24, down from £11.7bn in 2022-23.

In Scotland, the current rates for the Land and Buildings Transaction Tax, external (LBTT) are:

Purchasers who already have a residential property also have to pay an Additional Dwelling Supplement (ADS), external on top of LBTT if their share of the new property is worth £40,000 or more. The ADS is 8% of the purchase price.

This includes people buying a second home, a rental property or a holiday home.

In December 2024, the Scottish government announced a review of the current LBTT rules would start in spring 2025.

In Wales the current standard rates for Land Transaction Tax, external (LTT) are:

There is no first-time buyers’ relief in Wales.

Purchasers usually have to pay a higher rate of LTT if they:

The higher rates of LTT are:

Calculate how much LTT you will have to pay, external

You have 14 days to pay stamp duty from the date of completion in England and Northern Ireland, external.

In Scotland and Wales you have 30 days from the point of purchase to pay the tax due.

If it takes longer, you could face a fine, or be charged interest on the amount you owe.

House buyers often pay via their solicitors, but you can also pay directly online, or by cheque or cash in many banks.

It is also possible to add stamp duty to mortgage loans and increase your debt to cover the cost of the tax, but you could end up paying significantly more in interest payments.