The temporary increase in Stamp Duty Land Tax (SDLT) thresholds is set to expire on 31 March 2025, meaning transactions completed after this date will be subject to the higher Stamp Duty rates.
Currently, first-time buyers pay no stamp duty when buying a home worth up to £425k but this threshold will drop to £300k from April. For everyone else, the initial threshold at which stamp duty is paid will fall to £125,000 from £250,000. Thereafter, rates will apply at different purchase prices as shown in the table below*.
Jonathan Watt-Lay, Director, WEALTH at work, comments; “This change will inevitably make home ownership for first time buyers more expensive. House purchases will also get costlier for those trying to move up the property ladder.
The impending deadline could inevitably see a flurry of people looking to complete their property purchase before the changes, and it’s important those going through the process are aware of the pending tax changes, so they can take action. However, this pressure to complete in time could drive housing prices up, so people need to work out what will be best for them.”
He continues; “When buying a property many people would benefit from having a better understanding of key concepts such as budgeting, stamp duty and interest rates, along with how savings vehicles such as Lifetime ISAs (LISAs) or ISAs can help.
He adds; “Many employers now offer their staff financial education and guidance through workshops, digital tools and helplines to help them understand the key issues relevant to them, whether they are purchasing a first home, a new parent managing childcare costs, or planning for retirement. In addition, many are also putting in place workplace ISAs to help employees to start saving for the future.”
It’s always worth speaking to your employer to see how they can help you.