What's stamp duty?
Stamp Duty Land Tax (SDLT) is a tax added on all land transactions in England, Wales and Northern Ireland.
Property buyers must pay Stamp Duty Land Tax if:
- the buy a property or land over £125,000
- the purchase of a non-residential property or land over £150,000
If you're a first-time buyer, there's some good news for you!
From 22nd November 2017, most first-time buyers would be exempt from paying stamp duty, if they meet the following conditions:
- the purchase price of the property is under £300,000
- the people purchasing the property must be first-time buyers
If the property is worth between £300,00.01 - £500,000, a first-time buyer will qualify for 0% stamp duty on the £300,00.00 but must pay 5% stamp duty after that.
Autumn Budget 2017: Stamp Duty Land Tax Changes for First Time Buyers
For example, if the property is worth £350,000.00 the buyer will pay 5% (£2,500) on £50,000.00.
If a first-time buyer’s purchase price is over £500,000, there will be no discount on Stamp Duty Land Tax.
Stamp Duty Rates Breakdown
Stamp Duty Rates for first-time buyers under £500,000
|Purchase Price||Stamp Duty % you pay within each portion of the purchase price|
|Up to £300,000||0% (on that portion of the purchase price)|
|£300,000.01 to £500,000||5% (on that portion of the purchase price)|
Stamp Duty Rates for everyone else
|Stamp Duty % you pay within each portion of the purchase price|
|Purchase Price|| For first time buyers over £500,000 and non-first-time buyers
||For additional home buyers|
|Up to £125,000||0%||3%|
|£125,000.01 to £250,000||2%||5%|
|£250,000.01 to £925,000||5%||8%|
|£925,000.01 to £1.5 million||10%||13%|
|Above £1.5 million||12%||15%|