In November 2018 Philip Hammond announced that first-time buyers would have to pay no Stamp Duty on the first £300,000 of a property transaction as long as the property value is £500,000 or under. This means that if you are a first-time buyer you can save £5,000 on your property purchase. First-time buyers who purchased properties from the 22nd November 2017 are also entitled to this relief so can claim back their Stamp Duty.
First-time buyers also entering into shared ownership schemes can also benefit from not having to pay stamp duty on up to £300,000 of a purchase price of £500,000 or less. So if you buy a property which is worth £500,000 there will be no duty to pay on the first £300,000 but there will be a duty to pay on the remaining £200,000. These changes only apply to England and Northern Ireland. However, if you are looking at purchasing a property which is worth more than £500,000 you will not be able to benefit from this Stamp Duty relief.
The new stamp duty charges for first-time buyers as from the 29th October 2018 are:
- Up to £300,000 purchase price: 0% stamp duty
- £300,000.01 to £500,000: 5% (on that portion of the purchase price only)
If you bought a property on a shared ownership scheme since the 22 November 2017, and the property was valued under £500,000 when you purchased it you can apply for a Stamp Duty refund by following this link.
The shared ownership scheme is aimed at first-time buyers and also those people who have previously owned property but no longer own property. However, it only applies to those people who earn £80,000 or less or £90,000 if the property is based in London.
If you are looking at buying a property then why not find out exactly how much Stamp Duty you will need to pay by using our Stamp Duty calculator.