Do First Time Buyers Pay Stamp Duty?

If you’re in the market to buy your first home, you’ll want to know the extra costs associated with the house move. On top of the value of the property and conveyancing fees, Stamp Duty Land Tax is one of the common extra costs that come with buying property.

However, there are different amounts you pay depending on where you are on your property buying journey and the value of the property you’re purchasing.

If you’re a first time buyer, you may not be sure how much stamp duty you need to pay, or whether you need to pay any at all. This article will help you find that out.

Do I need to pay stamp duty as a first time buyer?

The good news is that there is currently a government-backed discount scheme in place, designed to lessen the impact of the pandemic on the property market.

This means you currently don’t have to pay stamp duty on properties up to the value of £250,000. That’s enough freedom to buy a pretty good first home.

Who is eligible for the stamp duty discount?

The stamp duty discount was created exclusively for first-time buyers, so if you already own a home outright or are a second property buyer, you won’t be eligible for the full stamp duty discount.

Stamp duty for first time buyers between July 1st and September 30th, 2021:

• Up to £250,000 – no stamp duty
• £250,001 to £925,000 – 5% stamp duty
• £925,001 to £1.5m – 10% stamp duty
• Above £1.5m – 12% stamp duty

Stamp duty for first time buyers from October 1st, 2021:

• Up to £125,000 – no stamp duty
• £125,001 to £250,000 – 2% stamp duty
• £250,001 to £925,000 – 5% stamp duty
• £925,001 to £1.5 million – 10% stamp duty
• Above £1.5 million – 12% stamp duty

In conclusion

So, in answer to your question of whether or not first time buyers pay stamp duty, the answer is that between now and the 30th September you won’t pay any stamp duty on properties up to £250,000, and after October 1st you won’t have to pay stamp duty on homes worth up to £125,000.

With most conveyancing taking around 12 weeks to complete, it’s a good idea to get the ball rolling well before that 30th September deadline.

We hope this article has made this aspect of buying a property simpler to understand.

For help calculating your Stamp Duty Land Tax and factoring it into your overall house buying and mortgage budget, Agentis can help. Speak to us today to arrange a free initial consultation.