Find out how much you will pay in stamp duty following the government’s major changes
Note: Stamp duty has been cut to zero for residential property purchases in England and Northern Ireland up to £500,000 from 8 July 2020 until 31 March 2021, read more here.
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 |
| £500,000 | £15,000 | £10,000 |
| £400,000 | £10,000 | £5,000 |
| £300,000 | £5,000 | £0 |
| £200,000 | £1,500 | £0 |
| Above £500,000 | No change | – |
| >£125,000 | £0 | £0 |
Second homeowners
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.
