First Time Buyer Stamp Duty Relief

In his budget in 2017 Philip Hammond announced that first time buyers would get relief on stamp duty for purchases made on or after 22 November 2017.

These rates were updated on 23rd September 2022.

Anyone who is buying a property as their main residence that costs less than £425,000 will pay no stamp duty on that purchase and for properties between the value of £425k and £625k stamp duty cost is 5% of the difference between those figures. For example, if you are purchasing a property worth £500,000 then you would pay £3,750 in stamp duty, i.e. 5% of 75,000 (500,000 – 425,000).

Frequently asked questions

Can I get first time buyer relief on properties over £625,000?

For any properties that cost more than £625,000 the standard rates of stamp duty apply and there is no First Time Buyer stamp duty relief.

Do I get relief on mixed use properties?

The relief does not apply to purchases of non-residential or mixed use properties.

Do both of us need to be first time buyers?

When you are purchasing the property as a couple, both of the individuals should not have owned a property before (i.e. they both need to be first time buyers).

Does the relief apply to leasehold properties?

FTB stamp duty relief applies to freehold properties and leasehold properties with at least 21 years remaining on the lease.

Do I have to live in the property?

Yes, all purchasers must intend to occupy the property that is being bought. It does not have to be immediate if there are circumstances stopping this – see the Government website for further information.

Does inherited property stop me from getting relief?

Yes, the guidelines state that relief is not available if a buyer has acquired a major interest in a dwelling which includes previous acquisitions by inheritance or gift.

What if I have only ever owned property overseas?

You would not be eligible for first time buyer relief.

What if I buy via Shared Ownership?

There are special rules for purchases using shared ownership. You should contact your solicitor for guidance and consult the Government guidance notes but relief is in theory available.

Can a company get relief?

No, only individuals and not companies can claim the first time buyer relief.

As always, whether or not you are in doubt about how much you need to pay, you should consult your solicitor regarding how much stamp duty is payable, if any, on your particular purchase and for your situation.

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