When you buy a house or flat, you'll need to pay stamp duty - unless you're a first-time buyer buying a home for less than £300,000.
Below, we explain how stamp duty works for first-time buyers and home movers.
- Different rates apply in Scotland and Wales, so if you're buying in either of those countries check out our guides on LBTT (Scottish stamp duty) and LTT (Welsh stamp duty)
First-time buyer stamp duty rates
In the 2017 Autumn Statement, Chancellor Philip Hammond abolished stamp duty for first-time buyers purchasing a home for £300,000 or less, effective immediately.
Those buying properties for between £300,000 and £500,000, meanwhile, won't have to pay stamp duty on the first £300,000. The excess between £300,000 and £500,000 will be charged at 5%.
First-time buyers purchasing homes for more than £500,000 will have to pay stamp duty at the standard rates - see the 'home movers' section below.
The rules mean that first-time buyers could save up to £5,000 on their stamp duty bills. The table below explains how much you'll save based on the price of your property.
First-time buyer stamp duty FAQs
We've answered the most common questions about the stamp duty tax relief for first-time buyers.
Home-mover stamp duty rates
Stamp duty is tiered, meaning that you pay different rates on different portions of the property price. You'll be liable to pay stamp duty when your property sale completes, although you'll have 30 days to pay the bill.
When you buy a property you're planning to live in (and you've owned a property before), you won't pay any stamp duty on the first £125,000. You'll then pay 2% on the portion up to £250,000 and 5% on the portion up to £925,000. Between that point and £1.5m, it's 10% - then 12% on anything over £1.5m.
Take a look at this example to see how it works:
- Property price: £275,000
- Portion 1: £0 - £125,000 - 0% tax, so total paid for this chunk of the purchase price = £125,000
- Portion 2: £125,000.01 - £250,000 - 2% tax (£2,500) + £125,000 = £127,500
- Portion 3: £250,000.01 - £275,000 - 5% tax (£1,250) + £25,000 = £26,250
- Total paid: £278,750 (£3,750 of which is stamp duty)
Find out more: to find out exactly how much stamp duty you'll pay on the property you're buying, use our stamp duty calculator
Buy-to-let stamp duty rates
Anyone buying a second home or buy-to-let property - ie any property that won't be your primary residence - now has to pay an extra 3% on each tier of stamp duty. Find out exactly how much you'll have to pay using our buy-to-let stamp duty calculator.
Correct as of date of publication.