First time buyers purchasing homes of £300,000 and under now pay no stamp duty at all, and those who have bought properties of up to £500,000 will also have benefited from a stamp duty cut, according to UK Government.
An estimated 121,500 first-time buyers have saved a total of £284 million thanks to the government’s cut to stamp duty, according to official statistics released
Stamp Duty Land Tax (SDLT) is paid if you buy a property or land over a certain price in England and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
According to UK government, first time home buyers are eligible for a relief, pay less or no tax if:
- First time buyer
- Purchase on or after 22 November 2017
- Purchase price is £500,000 or less
First time buyers don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
If the price is over £500,000, you follow the rules for people who’ve bought a home before and the following slabs apply.
| Property or lease premium or transfer value | SDLTÂ rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
