Stamp duty tax break saves first-time buyers £284m
Philip Hammond’s decision to abolish stamp duty land tax (SDLT) for most first-time buyers on all properties worth up to £300,000 saved homeowners £284 million in the first half of 2018.
The chancellor scrapped SDLT in Autumn Budget 2017 for most people taking their first steps on the property ladder in England, Northern Ireland and for a limited time in Wales.
Speaking at the time, Hammond expected the move to cut SDLT for 95% of first-time buyers and abolish it for 80% of them.
SDLT was axed on the first £300,000 of all purchase prices up to a value of £500,000, with a 5% rate chargeable on the portion between £300,000 and £500,000.
Those who bought their first home in Wales could have benefited from the move between 22 November 2017 and 1 April 2018, at which point the devolved land transaction tax replaced SDLT.
More than 121,500 first-time buyers have been able to get on the property ladder in the six months between 1 January 2018 and 30 June 2018.
Mel Stride, financial secretary to the Treasury, said:
“Our cut to stamp duty for first-time buyers is helping to make the dream of home ownership a reality for a new generation.
“In addition, we’re building more homes in the right areas and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”
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