Stamp Duty Land Tax
The Chancellor announced that, with effect from Budget day, there would be no Stamp Duty Land Tax for first-time buyers on the purchase of a home costing up to £300,000. The SDLT for other purchasers on a property of this value is £5,000. There will also be relief from SDLT for a first-time buyer on the first £300,000 of a more expensive property up to a maximum of £500,000. On the band between £300,000 and £500,000 the SDLT rate is 5%, so on a £500,000 house a first-time buyer will pay £10,000 rather than £15,000.
SDLT does not apply in Scotland, where the Scottish Parliament will take a separate decision on whether to apply similar measures to Land and Buildings Transaction Tax (LBTT). A separate Land Transaction Tax (LTT) will also apply in Wales from April 2018. LBTT and LTT bands and rates differ from those applicable to SDLT.