Stamp duty land tax is payable on the purchase of residential property at escalating rates. The first £125,000 of value is exempt from tax, but the next £125,000 is taxed at 2%. The rate then continues to rise until it reaches 12% on purchase prices in excess of £1.5 million.
However, relief is available to first-time buyers who, as of 22 November 2017, are able to claim exemption in respect of properties costing no more than £300,000. Relief ceases to be available on properties costing £500,000 or more, and the excess over the £300,000 exempt limit is taxed at 5%.
The conditions of eligibility are that the buyers should be individuals who have never previously owned a freehold or leasehold interest in residential property anywhere in the world and that the property is intended to be used as a main or only residence.