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Stamp Duty for First Time Buyers

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First Time Buyers stamp duty

There are Stamp Duty (SDLT) reliefs for first time buyers.

Stamp Duty Land Tax (SDLT), commonly known as just ‘Stamp Duty’, is the tax the buyers of UK pay on completion of their purchase. Whilst there are common rates applicable to all sales/purchases, there are reliefs for first time buyers.

What is Stamp Duty for First Time Buyers?

As a first time buyers, you should of course have in mind what SDLT will be due when you are deciding on how much you can afford to spend on your new home. The current Stamp Duty rates are as follows for first time buyers.

Purchase Price First Time Buyer SDLT rates 2023
Up to £425,000 0%
£425,001 – £625,000 5%
£625,001 plus Normal SDLT rates apply

What are normal rates of Stamp Duty?

The first time buyer rates are capped at £625,000.  So, if your first home is over that value, you will have to pay ‘normal’  rates.

Purchase Price SDLT SDLT (additional properties)
Up to £250,000 0% 3%
£250,001-£925,000 5% 8%
£925,001-£1.5mil 10% 13%
£1.5mil plus 12% 15%

If you are due to pay SDLT as a first time buyer, your conveyancer will tell you in good time, and confirm the exact amounts in your completion statement.

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