Did you know that 80% of first-time buyers don't need to pay Stamp Duty? Here’s our guide to Stamp Duty Land Tax.
When you buy a home in England, Wales and Scotland, the Government usually charges a tax called Stamp Duty Land Tax (SDLT). The amount you pay is dependent on the value of the property you purchase and whether you are a first-time buyer or not.
This guide explains how much Stamp Duty you will pay on your property. For purchases in Scotland, take a look at our guide to the Land and Buildings Transaction Tax in Scotland.
Stamp Duty for first-time buyers!
As a first-time buyer, you can benefit from stamp duty land tax relief on homes worth less than £500,000. That’s a saving of around £1,660 for an average first-time buyer
For first time buyers purchasing a home worth up to £300,000 there is no stamp duty, and for homes worth between £300,000-500,000, you won’t pay stamp duty on the first £300,000, which means total Stamp Duty will be reduced by £5,000.
The table below shows how much Stamp Duty you will need to pay as a first-time buyer.
|House purchase price
|£300,000 and under
||5% after the first £300,000
||Standard Stamp Duty rates apply
That means in total, 95% of first-time buyers who pay stamp duty benefit from Stamp Duty relief, including almost 80% in London.
For full eligibility details, take a look at this guidance from HM Treasury.
I’ve bought a home before, how much will I pay?
The amount of Stamp Duty you pay increases on a sliding scale dependent on the value of the property you purchase - like income tax.
That means you’ll pay stamp duty rates on the part of the property price within each tax band, as follows:
|Property or lease premium or transfer value
|Up to £125,000
|The next £125,000 (the portion from £125,001 to £250,000)
|The next £675,000 (the portion from £250,001 to £925,000)
|The next £575,000 (the portion from £925,001 to £1.5 million)
|The remaining amount (the portion above £1.5 million)
For more details on the recent changes to Stamp Duty, take a look at this HM Treasury Guidance.