First Time Buyer Stamp Duty Exemption – great for buyers but hard on the treasury?
22 November 2018
By Andi Michael
The HMRC reported today that 58,800 first time buyers claimed Stamp Duty exemption in the third quarter of 2018, taking the total number of users to 180,500.
They claim that this has meant Stamp Duty receipts have fallen 10% to £2.3 billion.
With first time buyers making up over half of the market, and the Autumn Budget promising to make Help to Buy more focused on first time buyers, and to extend Stamp Duty exemptions to Shared Ownership properties, it seems that number will continue to fall.
The Stamp Duty exemption for first time buyers means those who buy up to £300,000 will not pay any tax. Those paying between £300,000 - £500,000 will pay a reduced amount.
According to our data 75% of first time buyers on our site benefitted from the Stamp Duty exemption since November 2017, either by paying a reduced amount or no Stamp Duty at all.
21% of first time buyers were not affected by the exemption, as they bought properties beneath the original £125,000 Stamp Duty threshold. Only 4% of first time buyers on our site bought a property above the £500,000 threshold and so could not benefit from the exemption.
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Dee on 27/05/2019