News

Stamp duty scrapped for first time buyers on property up to £300,000

Nov 22nd 2017
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The Chancellor Philip Hammond has presented his Autumn Budget and with effect from today, where first-time buyers are spending £300,000 or less, the full amount will be free of stamp duty.

Mr Hammond said the move would cut the tax for 95 per cent of first-time buyers – and abolish it altogether for 80 per cent of them – outside of London.

However, in property hotspots like London, it will be available on the first £300,000 of the purchase price of properties up to £500,000. This represents a cut of up to £5,000.

  • 95% of first-time buyers who pay stamp duty will benefit
  • 80% of people buying their first home will pay no stamp duty
  • there is no relief for those buying properties over £500,000
  • if a couple are buying and only one is a first-time buyer, then they do not get the tax break

It will do nothing for those trading up, whose numbers have fallen sharply in the last 10 years, or potential downsizers who are put off by the stamp duty cost.

Additionally, local authorities will be able to increase the council tax premium on empty homes from 50% to 100% ‘to encourage owners of empty homes to bring their properties back into use’.

The move came as he promised a wide-ranging package to boost housebuilding, setting a target of an annual 300,000 homes built by the middle of the next decade.

Autumn budget in full.