Stamp Duty First Time Buyers

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Stamp Duty News

Stamp duty for first time buyers has been abolished for most purchasers.

Stamp duty for buy to let property has increased substantially from April 2016.

Stamp duty for second homes also attracts a 3 percent surcharge from April. Mobile homes, caravans and houseboats are exempt.

Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.

Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.

Stamp Duty for first time buyers

Stamp duty has now been abolished for most first time buyers in England and Northern Ireland.

Stamp Duty for first time buyers

A permanent change to the initial stamp duty threshold for first time buyers means that anyone buying their first home won't be liable for stamp duty if the purchase price is below £300,000.

Further relief is available for purchases up to £500,000 to help first time buyers in more expensive locations such as London.

Impact of the changes

The Government predict that the stamp duty changes will help up to 95% of first time buyers in England and Northern Ireland and up to 80% in London.

The new relief has been introduced with immediate effect and applies to anyone purchasing their first home from November 22nd 2017.

How does it work?

First time buyers will need to declare that they have never owned a property either in the UK or abroad. A special first time buyer code will need to be submitted with the stamp duty return once a home is purchased.

Full Stamp Duty relief is available up to £300,000, with reduced liability up to £500,000. Any purchases above £500,000 will attract the normal stamp duty rates on the whole purchase price.

Joint purchasers

If a property is being purchased by more than one individual then all parties will need to be first time buyers to qualify for the relief.

Wales and Scotland

The Scottish Governement have introduced first time buyer relief from June 2018. The initial LBTT rate for first time buyers has increased to £175k and purchases above £175k also benefit from the relief on the portion below this threshold.

In Wales stamp duty has been replaced by Land Transaction Tax (LTT). First time buyer relief is not currently available under the new LTT system but the higher zero tax threshold of £180k should capture most first time purchases.

First time buyers calculator

The stamp duty calculators below compare the level of tax before and after stamp duty relief was announced in the 2017 Autumn Budget. The calculations shown apply to freehold residential property purchased in England and Northern Ireland.

Before Budget


Purchase Price

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Calculate


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After Budget


Purchase Price

(Enter numbers only)

Calculate


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This stamp duty calculator is designed to give you an idea of your stamp duty liability when buying a freehold residential property in England & N.Ireland. Stamp duty calculations are rounded down to the nearest pound.
SDLT Calculator

Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!

SDLT Rates

UK stamp duty rates showing new and old SDLT thresholds. Instantly check UK SDLT rates.

LTT Calculator

Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.

LBTT Calculator

Stamp Duty in Scotland is now called Land and Buildings Transaction Tax (LBTT).