First time buyers save £284 million in stamp duty

First time buyers save £284m
HMRC's quarterly stamp duty land tax statistics showed 121,500 first-time buyers have saved £284m since the government introduced cuts to its stamp duty last year

More than 120,000 first-time buyers have saved a total of £284 million since the government made cuts to stamp duty, according to official figures released by HMRC.

The official statistics, which cover the period until 30th June this year, show transactions overall increased by 3% to 276,700 between the first and second quarter of 2018, but remain lower than 2017 levels.

52,400 transactions claimed first time buyers’ relief in the second quarter of 2018, making a total of 121,500 claims since the government introduced cuts to its stamp duty last year, saving an estimated £284 million.

Michael McCarthy, Developer at Equitas Properties said: “46 % of our new home buyers benefited from the recently introduced stamp duty reduction.

“This policy allowed these new home buyers reduced acquisition costs while increasing options, choice and purchasing power.”

No Stamp Duty on homes £300,00 and under

First time buyers purchasing homes of £300,000 and under now pay no stamp duty at all. Those buying properties up to £500,000 also benefit from a stamp duty cut by not paying any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.

Rates if you’re not a first time buyer

Property value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

 

Financial Secretary to the Treasury, Mel Stride, said: “Once again, we can see that our cut to stamp duty for first-time buyers is helping to make the dream of home ownership a reality for a new generation – exactly as we intended.

“In addition, we’re building more homes in the right areas, and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”

In the 2017 Autumn Budget, the Chancellor of the Exchequer announced relief from Stamp Duty Land Tax (SDLT) for first time buyers. The relief applies to purchases of residential property for £500,000 or less, provided the purchaser intends to occupy the property as their only or main residence.