Do first-time buyers pay stamp duty? | The Sun

STAMP duty can be an expensive up-front payment for first-time buyers and it may be difficult to avoid.

The rate a buyer might have to shell out depends on the price and type of property.

You only pay when you hit a certain threshold, which is currently £425,000.

It was originally less than this, as we explain below.

If you buy a property for less than this, then you don’t have to pay the tax as a first-time buyer. 

Rules are changing again in 2025 though – below we explain all.


Thousands of Brits face paying £4,655 more in mortgage payments in 2023

I’ll pay off my mortgage eight years early with easy trick – it’ll save me £20k

What is stamp duty and who has to pay?

Stamp duty land tax (SDLT) is a lump sum payment you have to make when purchasing a property over a certain threshold.

Home buyers always pay the stamp duty, not the seller.

This is often done through a solicitor on your behalf as part of the buying process.

Home buyers have 14 days from the date of purchasing a property to file a return to HMRC with any stamp duty due.

Most read in Money


Thousands to receive Universal Credit cash boost – are you eligible?


I've slashed my mobile phone bill to just 1p a month with little-known trick


Boost to families on Universal Credit as thousands of parents get £500 TODAY


Boots to close 300 shops across the country – is your local at risk?

What are the rules for first-time buyers?

Not everyone pays the same amount of stamp duty.

If you are a first-time buyer you can get a discount if the following applies to you: 

  • You, and anyone else you’re buying with, are first-time buyers
  • The purchase price is £625,000 or less

You pay the tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • buy a property through a shared ownership scheme
  • are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house

The rate a buyer has to pay depends on the price, type of property and whether or not they already own a home.

How have the rules changed recently?

Since September 2022, first-time buyers have not had to pay any stamp duty on homes costing less than £425,000.

They only have to pay it on properties costing more than this.

This figure was previously £300,000 but was increased by the then Chancellor Kwasi Kwarteng.

The maximum value of a property on which a first-time buyer's relief can be claimed also increased from £500,000 to £625,000.

Under the previous system, no stamp duty was paid on the first £125,000 of all property purchases but the government has doubled that to £250,000.

The change in thresholds will end on March 31, 2025.

Did the rules change during Covid?

The government previously introduced a stamp duty holiday for homes worth up to £500,000 during the Covid pandemic.

Read More On The Sun

Stacey Solomon strips off for bikini video four months after giving birth

Popular UK theme park offers seven days for the price of one

The aim was to give buyers a break and to buzz some energy back into the property market.

Stamp duty then went back to its previous rules in September 2021. 

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.

Source: Read Full Article