With effect from 22 November this year first-time buyers of residential property will not be liable to pay stamp duty on the purchase of properties up to £300,000 and the first £300,000 of properties up to £500,000
- The exemption only applies to individual first-time buyers
- The property must be residential.
- The property must be for use as the only or main residence of the buyer
- No duty is payable on the first £300,000.
- 5% is payable on any remainder up to £500,000
- The exemption applies to freehold and leasehold properties provided that the lease is for more than 21 years.
Questions and Answers
- What happens if I have exchanged but not yet completed?
You will benefit from the exemption.
- What happens if I have just completed but not yet paid stamp duty?
Unfortunately, you do not benefit. The exemption only applies to completions after 22 November this year.
- What happens if my partner is not a first-time buyer but I am?
Again, unfortunately, you do not benefit. Those buying in joint names must all be first time buyers.
- What happens if my first-time purchase is over £500,000?
You will not be eligible for any relief and must pay duty at normal rates on the full amount. A purchase over £500,000 or one “linked” to a purchase which results in the total value exceeding £500,000 will result in the payment of stamp duty on the total amount. There are special rules regarding linked transactions on which you should take professional advice.
- What happens if I own property abroad?
Anyone who has previously either alone or with others acquired a major interest in a dwelling anywhere in the world will not qualify for stamp duty relief.
- I previously inherited a property can I claim relief on my proposed purchase?
No. An interest in a dwelling includes previous acquisitions by inheritance or gift.
- If I am in rented accommodation can I claim relief on the purchase of a buy to let property?
No. the exemption will not apply if it is not going to be your only or main residence.
- I am divorced and previously jointly owned the marital home. I am now buying a property in my sole name. Do I benefit?
Unfortunately, because of your previous ownership, you do not qualify for relief.
- My parents are buying a property and putting me on the deeds. Do I get relief?
You will not do so if they already own property.
- Can I claim relief if I have previously acquired property as a trustee?
You can if you were not also a beneficiary of the trust and you meet the other conditions.
- What about the purchase of shared ownership property?
The exemption will only apply if you pay duty on the full market value of the property rather than a share and that market value does not exceed £500,000.
- What is the position in Scotland and Wales?
That is for Scotland to decide. Buyers in Wales will benefit until April next year when the Welsh government will decide.