Stamp duty easing the burden for first time buyers

In England and Wales and Northern Ireland, you have to pay Stamp Duty when you buy a residential property above a certain price. The rules for Stamp Duty were changed in 22nd November 2017, easing the burden on first time buyers and reduce their upfront costs.

A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

Since April 2016, an additional 3% has been added on each stamp duty band for people purchasing a second property or buy-to-let property.

First Time Buyers

Buying for £300,000 or less
No Stamp Duty is charged (your solicitor must still submit a SDLT return).

Buying for £300,000 and £500,000
No Stamp Duty is payable for on the first £300,000 and a 5% duty on the remainder of the price up to £500,000

Buying for over £500,000
First time buyers purchasing a property for over £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

Other Buyers

Buying under £125,000
No Stamp Duty is charged (your solicitor must still submit a SDLT return).

Buying between £125,001 and £250,000
No stamp duty on the first £125,000 and a 2% charge on the remainder of the price up to £250,000.

Buying between £250,001 and £925,000
No stamp duty on the first £125,000; a 2% charge on the portion of the price between £125,001 and £250,000; and then a 5% charge on the portion of the price over £250,001.

Buying between £925,001 and £1.5m
No stamp duty on the first £125,000; a 2% charge on the portion of the price between £125,001 and £250,000; a 5% charge on the portion of the price between £250,001 and £925,000; and then a 10% charge on the portion of the price between £925,001 and £1.5 million.

Buying over £1.5m
No stamp duty on the first £125,000; a 2% charge on the portion of the price between £125,001 and £250,000; a 5% charge on the portion of the price between £250,001 and £925,000; a 10% charge on the portion of the price between £925,001 and £1.5 million; and then a 12% charge on the portion of the price over £1.5 million.