A boost for first-time home buyers

For the next two years, first-time homebuyers will be able to buy properties worth up to 250,000 pounds without paying stamp duty, the Chancellor, Alistair Darling announced during his Budget 2010 speech.

“I can announce I will double the stamp duty limit for first time buyers from midnight tonight for this year and next,” the Chancellor told parliament. “This means 9 in 10 first-time buyers will pay no stamp duty at all.”

The Chancellor said the relief would be funded through an increase in stamp duty to 5 per cent on residential property selling for over one million pounds, but not until April 2011.

New Stamp Duty Property Rules
Property value up to £125,000 zero (up to £250,000 at zero for first-time buyers)
£125,001 to £250,000 1 per cent
£250,001 to £500,000 3 per cent
£500,001 to £1,000,000 4 per cent
Over £1,000,000 5 per cent (from April 2011)