2022 update: Read the most up-to-date insights on the Stamp Duty tax changes in our article, What the stamp duty tax cut means for you.
As of 22 November 2017, Philip Hammond, Chancellor of the Exchequer, announced that changes will be made to Stamp Duty rates for first-time buyers.
Stamp Duty is a tax that is levied on any property bought in the UK at the time of completion.
But following the government's latest announcements, changes have been made to the rates that first-time buyers will pay.
The main change is that Stamp Duty has been abolished for first-time buyers who are buying a property for £300,000 or less.
Previously, there were no special allowances for first-time buyers and Stamp Duty was only exempt on values from £0-£125,000. However, first-time buyers will now only pay Stamp Duty on any value over £300,000.
It’s important to note that the new Stamp Duty rates for first-time buyers only apply if you and the person/s you’re purchasing a property with are also first-time buyers – you're not entitled to a reduction in the tax if one of you already owns a property.
In conjunction with raising the value to which the Stamp Duty rates will apply, the other change in the legislation is that for any first-time buyer purchases up to £500,000, the first £300,000 will not be subject to the tax.
The first £300,000 will be exempt from Stamp Duty and anything between £300,001 and £500,000 will be at a rate of 5%.
First-time buyer Stamp Duty rates
The new Stamp Duty rates for first-time buyers will be applied as such:
| Price Range | SDLT Rate |
|---|---|
| £0 - 300,000 | 0% |
| £300,001-500,000 | 5% |
Normal Stamp Duty rates
If you're a first-time buyer and you purchase a property over £500,000, Stamp Duty will be applied at the normal rate:
| Price Range | SDLT Rate |
|---|---|
| £0 - 125,000 | 0% |
| £125,001-250,000 | 2% |
| £250,001-925,000 | 5% |
| £925,001-1,500,000 | 10% |
| £1,500,001+ | 12% |
These rates are applied proportionately.
Use our Stamp Duty calculator to find out how much Stamp Duty you will have to pay when buying your first property and check out our living in guides to find out more about property prices in London.
