Stamp Duty Land Tax Reform

What you need to know

The Chancellor presented his Budget to Parliament on Wednesday and the big news was stamp duty land tax, but what is it all about?

Let’s start with the basics:

Although house price rises have been slowing, more and more homebuyers have been facing a charge of stamp duty land tax.

So, what changed with the Budget on Wednesday?

Well, first and foremost, stamp duty land tax has been abolished for first-time buyers who are buying a property valued at £300,000 or less.

For properties costing up to £500,000, there is no stamp duty to be paid on the first £300,000, and the portion between £300,001 and £500,000 is taxed at 5%.

Here's our handy table to show how these changes stack up:

HOUSE PRICE

PRE-BUDGET (approx.)

POST-BUDGET (approx.)

£125,000

£0

£0

£150,000

£500

£0

£200,000

£1,500

£0

£250,000

£2,500

£0

£300,000

£5,000

£0

£325,000

£6,250

£1,250

£400,000

£10,000

£5,000

£500,000

£15,000

£10,000

There are however some potential drawbacks to be borne in mind:

For further guidance and fee-free initial advice on your next property purchase, please contact our experts on 0800 328 4466.