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Nil-rate stamp duty band for first-time buyers extended to £300k.

From 22 November 2017 first-time buyers paying £300,000 or less for a residential property will pay no stamp duty land tax (SDLT). This measure does not apply in Scotland, as SDLT was devolved to the Scottish Government on 1 April 2015. This measure will apply in Wales until 1 April 2018, when SDLT will be devolved to Welsh Assembly.

First-time buyers paying between £300,000 and £500,000 will, as before, pay SDLT at 5% on the amount of the purchase price in excess of £300,000 – a reduction of £5,000 on the total amount of SDLT they would have previously paid.

A first-time buyer is defined as an individual who has never owned an interest in a residential property in the UK or anywhere else in the world and who intends to occupy the property as their main residence.

First-time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

The relief must be claimed in an SDLT return.

The revised rates and thresholds for residential property purchases worth £500,000 or less by first-time buyers will be as follows:

Portion of consideration Current standard rate Rate for first-time buyers
Up to £125,000

0%

0%

Over £125,000 and up to £250,000

2%

0%

Over £250,000 and up to £300,000

5%

0%

Over £300,000 and up to £500,000

5%

5%

Article from ACCA In Practice