by Sophie Hutchings

Stamp Duty will increase in England and Northern Ireland

Stamp Duty Land rates are changing from 1st April 2025, when the temporary increases to the thresholds that were put in place in September 2022, are due to come to an end. Although this will affect anyone moving homes, it will particularly affect first-time buyers as currently, first-time buyers do not pay any stamp duty.

• The nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
• The nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000.
• The maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000 and will return to the previous level of £500,000.

Council Tax costs will be rising

Starting from 1 April, Council Tax bills will increase for millions of households, with the majority of local authorities in England anticipating a rise of 5%, which will add approximately £109 to the average band D bill. In Scotland, most councils are expected to implement increases of no less than 8%, whereas in Wales, the bills will rise by a margin of 4.5% to 9.5%.

Electric car owner? You will have to start paying duty

Owners of electric, zero-emission, or low-emission cars, vans, and motorcycles will now be obligated to pay vehicle tax similarly to owners of petrol and diesel vehicles. This regulation applies to both new and existing vehicles.

For cars registered on or after 1 April 2025, the initial vehicle tax will be set at the lowest rate of £10 for the first year. From the second year onward, the standard rate of £195 will apply.

Vehicles registered between 1 April 2017 and 31 March 2025 will be subject to the standard rate of £195.

Additionally, cars registered between 1 March 2001 and 31 March 2017 will be reassigned to the first band with a Vehicle Excise Duty (VED) value, which will be set at £20.