The November 2017 Budget introduced stamp duty land tax (SDLT) relief for first-time buyers who buy a property costing up to £500,000 from 22 November 2017.
The relief cut SDLT by £1,660 for someone buying the average first-time buyer property for £208,000.
First-time buyers do not pay any SDLT on purchases of residential property costing £300,000 or less. For purchases costing between £300,000 and £500,000, they just pay SDLT at the rate of 5% on the excess over £300,000. However, normal rates of SDLT are paid on the full purchase price if it exceeds £500,000.
A first-time buyer is defined as someone who has never owned a freehold or leasehold 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. Where there are joint purchasers, all purchasers need to be first-time buyers.