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Stamp Duty Changes Will You Be affected?

23 Nov, 2017
stamp duty

Stamp duty will be abolished immediately for first-time buyers buying a home of up to £300,000, Chancellor Philip Hammond has said.

For properties costing up to £500,000, no stamp duty will be paid on the first £300,000.

Mr Hammond said this meant 95% of first-time buyers would see stamp duty cut, while 80% would pay none at all.

This is great new for first time buyers, who will be saving thousands.

What is stamp duty?

 

is a tax charged by the government when you buy a property for more than £125,000. The amount you pay depends on the cost of your new home.

 

The tax was first introduced in 1694 as a way to raise money for a war against France, and was eventually introduced on a wide range of purchases, including newspapers and perfume.

In 2003, the then chancellor Gordon Brown introduced stamp duty land tax (SDLT) to replace the old duty and homebuyers became legally responsible for declaring their purchase and paying the tax.

 

In recent years successive chancellors have used the tax as a lever to alter the course of the housing market. In 2008 and 2010 Alistair Darling launched stamp duty holidays aimed at encouraging sales; in 2012 George Osborne introduced higher rates for £2m-plus properties bought by overseas companies; and in 2016 he added a surcharge on second homes in a bid to calm the buy-to-let market.