At last, we have had some long-awaited good news from the budget for the housing market.

Yesterday it was announced that with immediate effect Stamp Duty Land Tax has been ‘abolished’ for first-time buyers for the first £300,000 of a purchase price of up to £500,000. 

So what does this mean?

A first-time buyer is someone who:

• has never owned or had an interest in a residential property in the entire world and
• who intends to occupy the property being purchased in the UK as their main residence.

For example, if you are purchasing a property at £275,000 you will not pay any Stamp Duty, provided you can comply with the requirements of being a first-time buyer.

If you are purchasing a property at £400,000 you will only receive relief on the first £300,000 and must pay 5% on the amount between £300,000 and £400,000.

If you are purchasing for over £500,000 you will not be entitled to any relief of Stamp Duty.

For more detailed information, please see the Government’s policy paper or for residential property enquiries, contact our Residential Property team.