If you’re thinking about moving house this year, you’re probably wondering how the new stamp duty rules will affect you. And fair enough—it’s not exactly pocket change we’re talking about. With the recent changes coming in from April 2025, the way you plan your budget might shift a bit. It’s important to know what’s changed, how much you’ll need to pay (if anything), and what it all means when you’re buying or selling a home.
This guide will walk you through the new stamp duty rules in plain English—no waffle, no jargon. Just the stuff you actually need to know to make informed decisions about your move.
So, what’s changed with stamp duty in 2025?
Stamp duty has always been one of those costs that sneaks up on you. One minute you’re figuring out how much you can afford to borrow, and the next you’re hit with thousands in tax. But this year, things look a bit different.
From April 2025, the government has made several changes to how stamp duty is charged in England and Northern Ireland. (Scotland and Wales still follow their own rules.)
Here’s what’s new:
- The nil-rate threshold has been permanently raised to £300,000 (previously it was £250,000).
- First-time buyers can now benefit from no stamp duty on purchases up to £350,000 (up from £425,000, but with a narrower band).
- Rates above the nil threshold have been slightly adjusted for properties in higher brackets.
- Second-home buyers and investors still pay the 3% surcharge on top of standard rates.
What this means in simple terms is that most people moving into their main home could pay less—or nothing at all—depending on the price.
Will you have to pay stamp duty on your next move?
This depends entirely on two things: how much your new place costs and whether you’re a first-time buyer or not.
If you’re buying your first home and it costs £350,000 or less, you won’t pay a penny in stamp duty. That could save you thousands. But if your property goes over £350,000, you’ll pay a reduced amount up to £500,000, and the standard rates kick in above that.
If you’re not a first-time buyer, you get the first £300,000 tax-free. After that, rates rise in bands.
Here’s a quick idea of what you might pay:
- Up to £300,000 – 0%
- £300,001 to £500,000 – 5%
- £500,001 to £925,000 – 10%
- £925,001 to £1.5 million – 12%
- Above £1.5 million – 14%
Say you’re moving to a house worth £450,000. You’ll pay 0% on the first £300,000, then 5% on the next £150,000. That’s £7,500 in stamp duty.
How do these changes affect your moving budget?
If you’ve already been house-hunting, you probably know how quickly costs stack up—solicitor fees, removal vans, surveys, mortgage fees, the list goes on. And stamp duty? It used to be one of the biggest extra costs you had to plan for.
With the threshold raised, you might find that you’ve got a bit more breathing space in your budget. That money could go towards:
- Upgrading your kitchen or bathroom
- Hiring a professional moving team
- Putting down a bigger deposit
- Furnishing your new home
Even if you’re still paying some stamp duty, the fact that more of the lower-end properties are now tax-free means you’re likely better off than you would have been a year ago.
What if you’re selling and buying?
Lots of people are both selling and buying at the same time. That can make things a bit more complicated. If you’re moving up the property ladder, the new rules might save you some money—especially if you’re not going into the higher rate bands.
But the real win here is for people who are downsizing. If you’re selling a more expensive home and moving into something smaller, you could end up paying far less in tax than you expected. That could free up money for retirement, travel, or helping out your family.
Just keep in mind that if you still own another property (like a buy-to-let), the second-home surcharge still applies. That’s 3% extra, even if the new property is your main residence.
Are you a first-time buyer?
If you’re buying your first place, the 2025 changes are pretty good news. You’re now exempt from stamp duty on homes worth up to £350,000, which covers a decent chunk of the market—especially outside of London.
It’s also worth remembering that lenders sometimes look more favourably on buyers who don’t have to cover stamp duty because it means you’ve got more cash to put towards your deposit or legal costs.
The downside is that the exemption used to go up to £425,000, so some first-time buyers in more expensive areas might miss out now. But for most people, the savings will make it easier to get on the ladder.
What happens if you’re buying a second home or investing?
If you’re picking up a second home—maybe a holiday let, a buy-to-let, or a place for a family member—you’ll still need to pay the additional 3% surcharge on top of normal stamp duty rates.
That means:
- Up to £300,000 – 3%
- £300,001 to £500,000 – 8%
- £500,001 to £925,000 – 13%
- £925,001 to £1.5 million – 15%
- Above £1.5 million – 17%
Let’s say you’re buying a second property worth £350,000. You’d pay 3% on the first £300,000 and 8% on the next £50,000. That’s £9,000 plus £4,000—£13,000 in total.
The surcharge is there to discourage property investors from driving up house prices, but if you’re planning long-term, it might still be worth it depending on rental income or future sale value.
How do you actually pay stamp duty?
Once you’ve completed the purchase, your solicitor or conveyancer will usually handle the stamp duty paperwork and payment. It needs to be done within 14 days of completion.
Even if you don’t owe any tax (say, your property is under the threshold), the form still has to be submitted unless the property is fully exempt.
So the process goes like this:
- You exchange contracts.
- You complete the sale.
- Your solicitor files the stamp duty return.
- The payment is made to HMRC.
It’s all pretty straightforward, but it’s one more reason why having a good solicitor makes a big difference.
What if you’re partway through a move?
If you agreed a sale before April 2025 but complete after the changes kicked in, you’ll pay the new rates. It goes by completion date, not when you made the offer or exchanged contracts.
So even if you started the process before April, you could still benefit from the new rules—as long as the deal hasn’t completed yet. That’s something worth checking with your solicitor if you’re not sure.
Are there ways to reduce stamp duty?
You can’t dodge stamp duty altogether unless your property is below the threshold—but there are a few things you can look into:
- Split the price – If your purchase includes things like furniture or fittings, you might be able to deduct their value from the total property price. That could nudge you into a lower band.
- Transfer ownership – If you’re transferring part of a home to a spouse or partner as a gift, and no money changes hands, you might not pay stamp duty.
- Buy in certain areas – In some regeneration zones, there are schemes that offer incentives or reduced rates. These are rare, but worth checking if you’re looking in specific postcodes.
Always talk to your solicitor or tax adviser before trying anything like this. You want to make sure it’s all above board.
What do these changes mean for the housing market?
When stamp duty is cut, it often gives the housing market a boost. It makes it cheaper for people to move, which can increase demand. But if prices go up too quickly, those savings can get swallowed by higher asking prices.
Right now, the market is still finding its feet after a few rocky years. Mortgage rates have been up and down, and buyers are more cautious. The 2025 changes are aimed at helping people move more easily—whether they’re upsizing, downsizing or getting onto the ladder for the first time.
For most people, it means they can look at properties they might not have considered before. And that bit of extra wiggle room in your budget can help make your move smoother, with less stress and fewer compromises.
What should you do next?
If you’re thinking about moving this year, now’s a good time to speak to a mortgage broker or financial adviser. Work out your numbers using the new stamp duty rules and see where you stand.
You don’t need to rush into anything, but it’s always better to plan ahead—especially if you’re hoping to move before any other big policy changes come in.
Get your paperwork in order, check your credit score, and make sure your deposit’s where it needs to be. That way, when the right home comes up, you’re ready to go.
Final thoughts
Stamp duty has always been one of those unavoidable parts of moving house. But with the 2025 changes, there’s now a bit more breathing room for most buyers. Whether you’re getting your first place, moving up, or downsizing, understanding how the new rules affect you could help you save money—and avoid any nasty surprises.
Take your time, do your research, and get advice when you need it. The more you know before you start your move, the smoother things will go.
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