What the Stamp Duty Change Means
If you bought a property in early 2025, you may have been affected by the recent stamp duty changes in England. From 1 April, the temporary thresholds introduced in 2022 officially ended, meaning most homebuyers now face higher bills.
At ASL Solicitors, we understand this caused concern for many buyers trying to complete before the changes took effect. Our conveyancing solicitors in Rochdale worked hard to support clients through this transition.
In this article, we answer some common questions to help you understand the stamp duty changes with confidence.
What is Stamp Duty and When Do I Have to Pay It?
Stamp Duty Land Tax (SDLT) is a tax paid when buying a property in England or Northern Ireland. It’s based on the purchase price and must be paid within 14 days of completion.
At ASL Solicitors, we handle the stamp duty paperwork and submit the payment to HMRC on your behalf, using funds you provide before completion, as part of our property conveyancing services.
How Have Stamp Duty Rates Changed Recently?
As part of the government’s efforts to boost the housing market in 2022, temporary rates were introduced. These allowed buyers to pay no stamp duty on the first £250,000 of a property’s value.
From 1 April 2025, the nil-rate band returned to £125,000. Buyers now pay 2% on the portion from £125,001 to £250,000, increasing the overall tax bill for most purchases.
These stamp duty changes have impacted around 90% of buyers, especially those who missed the March deadline.
How Much Stamp Duty Will I Pay on My Property?
From April 2025, the standard stamp duty rates are:
- 0% on the first £125,000
- 2% on £125,001–£250,000
- 5% on £250,001–£925,000
- 10% on £925,001–£1.5 million
- 12% above £1.5 million
For example, if you’re buying a property for £300,000, you’ll pay:
- 0% on £125,000 = £0
- 2% on £125,000 = £2,500
- 5% on £50,000 = £2,500
- Total: £5,000
This is double what many buyers would have paid under the temporary rates.
Are There Any Exemptions or Reliefs Available?
Yes. Some buyers may still qualify for reliefs or exemptions, depending on their circumstances:
- Stamp duty for first-time buyers (more below)
- Transfers between spouses or civil partners during divorce or separation
- Inherited properties (no SDLT on inheritance)
- Gifting property without payment or mortgage debt
At ASL Solicitors, our team checks whether you qualify for any relief as part of our comprehensive conveyancing services.
Does Stamp Duty Apply to Leasehold Properties or Transfers Between Family Members?
Yes, stamp duty applies to both freehold and leasehold properties. If you’re buying a leasehold property, SDLT is based on the purchase price, just like any freehold property.
For family transfers, SDLT is only charged if there is a “chargeable consideration,” such as money or mortgage debt being transferred. Gifting a property outright without payment or debt typically doesn’t incur tax, but it’s important to seek legal advice.
Do First-Time Buyers Still Get a Stamp Duty Discount?
Yes, but the rules changed in April 2025. Before 31 March 2025, first-time buyers paid:
- 0% on the first £425,000
- 5% on £425,001–£625,000
From 1 April 2025, the discount was reduced to:
- 0% on the first £300,000
- 5% on £300,001–£500,000
- No relief above £500,000
First-time buyers completing after the deadline have paid significantly more, which is why many rushed to complete beforehand.
What Counts as Being a First-Time Buyer for Stamp Duty Purposes?
To qualify for first-time buyer relief, you must never have owned residential property anywhere in the world — even inherited homes or shares count.
If you’re buying a property jointly, both buyers must meet this requirement. If one of you has owned property before, you won’t qualify.
We help first-time buyers confirm their eligibility and apply the correct relief as part of our property conveyancing services.
How ASL Solicitors Handled the Stamp Duty Changes
The stamp duty changes placed huge pressure on our conveyancing department. Many clients urgently tried to complete before 31 March, creating intense demand.
Delays from lenders, surveyors, and removal companies made some transactions more challenging. Despite this, our team remained committed to providing efficient and supportive legal property services.
At ASL Solicitors, we pride ourselves on being among the best conveyancing solicitors in Greater Manchester and beyond. Whether you’re a first-time buyer or transferring a home to a family member, we keep your transaction moving and your stress levels low.
Need Help with Stamp Duty or Property Transactions?
If you’re unsure how the current stamp duty rules affect your move, our experienced conveyancing solicitors in Rochdale are here to help.
Contact ASL Solicitors today on 01706 711176 for clear, friendly advice and support with your next move.