First Time Buyer Stamp Duty

Stamp Duty Holiday 2021

As of 3rd March 2021, the Chancellor announced an extension to the Stamp Duty holiday for all properties in England and Northern Ireland up to the value of £500,000 – this will continue to be the case for all properties purchased by 30th June 2021. After that, the exemption value will reduce to £250,000 until the 30th September 2021. For second homes or Buy to Let properties there will be a discount, where only 3% Stamp Duty is payable up to the first £500,000. Above that, the usual percentage applies.

In Wales, the higher threshold has been extended and will remain at £250,000 until 30th June 2021.

In Scotland, the raised threshold for paying Land and Buildings Transaction Tax has not been extended – it will end on 31st March 2021. ,

Do first time buyers pay Stamp Duty?

The rules around first time buyers paying Stamp Duty changed in 2017. If you are a first time buyer in England or Northern Ireland, you will not pay any Stamp Duty on properties up to the value of £300,000. If you buy a property up to the value of £400,000, you’ll pay 0% on the first £300,000, and 5% on the remaining portion. For example, on a property worth £400,000, you would pay 0% on £300,000 and 5% on the remaining £100,000, meaning your Stamp Duty bill would be £5,000.

How is a first time buyer defined?

A first time buyer must not own, or have ever owned, a domestic property. This includes any property you briefly owned and then sold (either in the UK or abroad) and includes inherited properties. However, you are allowed to own commercial property.

If you are buying with someone else, whether a partner, friend or family member, in order to get the exemption, you both must fulfil the first time buyer criteria.

First time buyer Stamp Duty in Scotland

The equivalent of Stamp Duty in Scotland is Land and Buildings Transaction Tax (LBTT). In Scotland, first time buyers are exempt up to £175,000. If as a first time buyer, you purchase a property worth more than £175,000, you’ll pay 0% on that, then the standard LBTT on anything above that amount.

First time buyer Stamp Duty Wales

In Wales, the equivalent of Stamp Duty is Land Transaction Tax (LTT). There is no official first time buyer exemption in Wales, but as average house prices are lower, most first time buyers will never pay LTT.

First time buyer Stamp Duty Calculator

If you want to check how much Stamp Duty you’ll pay as a first time buyer, use our Stamp Duty Calculator to get an instant breakdown.