What has changed?
The Chancellor announced that stamp duty was abolished for first time buyers purchasing a property worth up to £300,000. Therefore no first time buyers purchasing a property up to £300,000 will pay any stamp duty.
Furthermore no first time buyers purchasing a property up to £500,000 will pay any stamp duty on the first £300,000.
Purchases over the threshold of £300,000 will attract stamp duty at 5%, in the £300,000-£500,000 band.
No purchase over £500,000 will attract any stamp duty discount.
As a result of the Budget, any first time buyers purchasing a property between £125,000 and £500,000 will make a saving.
A purchase at a price of £200,000 would previously have attracted stamp duty of £1,500 previously. This will no longer be payable by first time buyers.
A purchase at a price of £300,000 would previously have attracted stamp duty of £5,000. Now there is no longer any tax payable for first time buyers.
A purchase at a price of £400,000 would previously have attracted stamp duty of £10,000. Now, only £5,000 tax would be payable because 5% tax is charged on the £100,000 over the £300,000 threshold.
Will I be classed a first time buyer?
A first-time buyer is a person who has never owned any property before and who is purchasing their only or main residence, but not a buy-to-let property.
The Treasury says any residential property owned anywhere in the world is taken into account when determining whether you are a first time buyer.
In the case of joint purchasers, all would need to be first-time buyers to qualify for the new stamp duty exemptions.