First-time buyers and house movers in Northern Ireland will pay thousands more in stamp duty from next month - but just how much extra will you have to pay out?
Stamp duty is a tax that you have to pay when you purchase a property, depending on a number of factors such as the purchase price, whether you’re a first-time buyer, and if the place you're purchasing will be your main residence, or a second property. But major changes are coming in April, which means the thresholds for stamp duty in England and Northern Ireland are changing.
You pay stamp duty based on the portion of the property value where it is chargeable. For example, if you're buying a property for £350,000 and aren't a first time buyer, under current rules, you would pay no stamp duty on the first £250,000, then 5% on the part that is worth between £250,001 and £350,000. This means your stamp duty bill would be £5,000.
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However, after April 1, the stamp duty due on this home would jump to £7,500. This is because there would be no stamp duty due on the first £125,000, then you would pay 2% on the part that is worth between £125,001 and £250,000, and 5% between £250,001 and £350,000.
You can use our stamp duty calculator below to see exactly how much these changes could cost you, whether you're moving home, or if you're a first-time buyer in Northern Ireland:
The last day to complete on a house sale before stamp duty changes is March 31. You need to pay stamp duty within fourteen days of completing a property purchase. Your solicitor can arrange to make the payment for you. It may also be possible to add stamp duty to your mortgage - but this does mean you are borrowing more which can affect your affordability.
How is stamp duty changing?
Here are the current stamp duty rates in England and Northern Ireland that will remain in place until March 31, 2025:
Purchase price - up to £250,000 (£425,000 for first-time buyers) ; Rate for main residence - 0% Purchase price - £250,001 to £925,000 ; Rate for main residence - 5% Purchase price - £925,001 to £1,500,000 ; Rate for main residence - 10% Purchase price - £1,500,000 and above ; Rate for main residence - 12%Here is how stamp duty rates will change in England and Northern Ireland from April 1, 2025:
Purchase price - up to £125,000 (£300,000 for first-time buyers) ; Rate for main residence - 0% Purchase price - £125,001 to £250,000 ; Rate for main residence - 2% Purchase price - £250,001 to £925,000 ; Rate for main residence - 5% Purchase price - £925,001 to £1,500,000 ; Rate for main residence - 10% Purchase price - £1,500,000 and above ; Rate for main residence - 12%For all the latest news, visit the Belfast Live homepage here and sign up to our daily newsletter here.
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