Stamp Duty Land Tax (SDLT) is a tax that homebuyers in England (and Northern Ireland) pay when purchasing property or land over a certain price. For first-time buyers, there are specific reliefs available, which can significantly reduce the amount of SDLT they owe.
Stamp Duty for First-Time Buyers in England (2024)
1. Purchase Price Thresholds
- Up to £425,000: First-time buyers pay no Stamp Duty.
- £425,001 to £625,000: Stamp Duty is charged at 5% on the amount over £425,000.
- Above £625,000: No relief is available, and SDLT is charged at the standard rates for residential property.
2. How It Works
- Example 1: If you buy a property for £400,000, as a first-time buyer, you won’t pay any Stamp Duty.
- Example 2: If you buy a property for £500,000, you’ll pay 5% on the amount over £425,000, which is £75,000. This means your SDLT bill would be £3,750.
- Example 3: If the property costs £650,000, you won’t qualify for the first-time buyer relief, and you’ll pay the standard SDLT rates applicable to all buyers.
3. Eligibility
- You must be purchasing your first home.
- The property must be intended for your primary residence.
- The relief is not available for buy-to-let properties or for those purchasing an additional home.
4. Standard SDLT Rates (Non-First-Time Buyers)
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
Key Points to Remember
- First-time buyers should ensure they meet the eligibility criteria to benefit from the SDLT relief.
- Always check for the latest updates, as SDLT thresholds and rates can change.
This relief is designed to help first-time buyers get onto the property ladder by reducing the upfront costs associated with purchasing a home.