What SDLT rate is applied to property purchases between £300,001 and £500,000 for first-time buyers?

For first-time buyers purchasing properties valued between £300,001 and £500,000, the correct SDLT (Stamp Duty Land Tax) rate applied is 5%. This rate is applicable specifically to the portion of the purchase price that falls within that price range.

First-time buyers are entitled to specific reliefs and incentives under SDLT, which can create varying rates depending on the overall purchase price. While the first £300,000 of the property may be exempt from SDLT for first-time buyers, any amount exceeding that up to £500,000 incurs a 5% rate on the excess. Therefore, if a first-time buyer purchases a property for £350,000, they would pay 5% on the £50,000 over the initial £300,000 threshold, resulting in a £2,500 SDLT liability.

This understanding of the tiered SDLT structure is essential for new buyers navigating the property market, as it greatly affects the total costs involved in purchasing a home.