A guide to stamp duty changes for first time buyers
Find out how much you will pay in stamp duty following the government’s major changes
What is stamp duty?
Stamp Duty Land Tax is a tax paid by homebuyers when they purchase a property or land. It is a banded tax relating to the overall cost of a property and applies to all property transactions whether the buyer is using cash or a mortgage. It is worth noting that different rules apply in Scotland.
First time buyers
In November 2017, Chancellor Philip Hammond announced that stamp duty for first time buyers on homes worth up to £300,000 was abolished completely. In addition, those buying a home worth up to £500,000 in areas of high value such as London, first time buyers would no longer have to pay the stamp duty tax on the first £300,000 of value. The remaining £200,000 incurs the 5% charge but this could still mean a saving of up to £5,000.
Mr Hammond suggested that 95% all first-time buyers would benefit from the measures, with 80% not paying stamp duty. Estate agent Savills estimates that the average stamp duty bill for first-time buyers is around £2,700.
The changes were effective immediately but do not apply in Scotland unless the Scottish government decides to implement them.
Stamp duty changes for first time buyers
|Property Price||Stamp duty before the 2017 budget||Stamp duty now payable|
|Above £500,000||No change||-|
There have been huge changes to stamp duty in recent years for second homeowners – read the OnTheMarket guide to find out the latest news for future landlords and holiday homeowners.
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