Stamp duty removed for 80% of first-time buyers

The Autumn budget included the very good news for prospective home buyers, that first-time buyers will not pay stamp duty on the first £300,000 of any property with a value of up to £500,000. On a home worth less than £300,000, therefore, you’ll pay no stamp duty at all.

The Treasury has calculated that this change will mean zero stamp duty for 80% of first-time buyers, saving £1,640 on the average first-time purchase of a £210,000 property.

To clarify, a purchase price of up to £300,000 attracts zero stamp duty; between £300,000 and £500,000, you pay 5% on that portion alone; and for properties costing more than £500,000, there is no change.

The changes apply to England, Wales and Northern Ireland, but not Scotland. To qualify, you must be a first-time buyer, not having bought or inherited a property before anywhere in the world. And buy-to-let purchases do not benefit from this change: the property purchased must be your main residence.

Here at Compass, we are very excited about this change, as it opens the door for many more first-time buyers successfully to purchase their own home. If you think that this change could have beneficial consequences for you, you will no doubt have questions about the details of the initiative. Please call us today for a full, confidential and without-obligation discussion of your situation and plans.