Since November 2017, more than 120,000 first-time buyers have saved £284,000 following the introduction of first-time buyers’ relief from Stamp Duty Land Tax (SDLT). SDLT is a tax on properties in England and Northern Ireland. It is estimated that, over the next five years, this relief will help over a million people get onto the property ladder.
The relief ensures that first-time buyers purchasing homes valued up to £300,000 do not incur a SDLT charge at all – with those paying up to £500,000 also benefiting from a reduction.
Mel Stride, MP, The Financial Secretary to the Treasury said, “once again, we can see that our cut to stamp duty for first-time buyers is helping to make the dream of home ownership a reality for a new generation – exactly as we intended…”
He added, “In addition, we’re building more homes in the right areas, and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”
Scotland and Wales
Those buying property in Scotland pay Land and Buildings Transaction Tax (LBTT), whilst those in Wales (since 1 April 2018) pay Land Transaction Tax (LTT). Earlier this year, Scotland introduced its own version of a new LBTT relief for first-time buyers of properties up to £175,000.
The Scottish relief raised the zero-tax threshold for first-time buyers from £145,000 to £175,000. It is estimated that around 80 per cent of first-time buyers in Scotland will pay not LBTT at all.
Furthermore, Scottish first-time buyers acquiring properties above £175,000 will also benefit from relief on the portion of the price below the threshold – meaning all first-time buyers will benefit from the relief by up to £600.
In Wales, where SDLT has been replaced by a LTT from 1 April 2018, the starting rate will be £180,000, benefiting not just first-time buyers but all home buyers in Wales.