With immediate effect, stamp duty has been abolished for first-time buyers on properties worth up to £300,000, or on the first £300,000 of a property worth up to £500,000.
A first-time buyer is defined as someone who has never owned an interest in any residential property and who intends to occupy the property as their main residence.
HMRC show the new rates as follows:
| Portion of consideration | Standard Rate | Rates for first-time buyers |
| Upto £125,000 | 0% | 0% |
| Over £125,000 and up to £250,000 | 2% | 0% |
| Over £250,000 and up to £300,000 | 5% | 0% |
| Over £300,000 and up to £500,000 | 5% | 5% |
As a result of this, the average first time buyer in Norfolk and Cambridgeshire will pay no stamp duty whatsoever. For first-time buyers in London, with the average first-time buyer property costing in the region of £410,000, the stamp duty will nearly halve from £10,500 to £5,500.
With the average first-time buyer property costing in the region of £210,000 (excluding London), first-time buyers will be saving approximately £1,660.
Property law expert Anna Hall of Ward Gethin Archer solicitors in King’s Lynn commented “The change in stamp duty has caught most of the attention in this year’s budget. It’s certainly a move that will be welcomed by first-time buyers, but does add yet more complexity to the application of this particular tax, where we already have different rates for second home owners and landlords.”
“Buyers need to read the small print before rushing out to make an offer, as there are clear distinctions on who is eligible. It will not apply if any property has been owned at any previous time, whether here or anywhere else in the world, and it must be the only or main home for the buyer. In a joint purchase, everyone would need to qualify as a first-time buyer. Buyers will need to check out the detail with their solicitor, and the benefit must be claimed when the Stamp Duty Land Tax return is made to HMRC during the purchase process.”
If you have any questions about how the changes may affect you then contact one of Ward Gethin Archers property law experts at who will be happy to help, on 01553 660033.
This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.
