Stamp duty has been abolished for first-time buyers purchasing properties costing up to £300,000, while those buying more expensive homes worth up to £500,000 won't pay any duty on the first £300,000.
HM Treasury estimates the move, which was announced in today's Budget and applies from 00.01am this morning, will take 80% of first-time buyers avoid paying stamp duty altogether.
The changes apply to purchases by first-time buyers in England, Wales and Northern Ireland. We're checking if there are any changes happening in Scotland and will update this story when we know more.
So what's the new system for first time buyers?
In England, Wales and Northern Ireland, the new stamp duty rates for first-time buyers are as follows
Up to £300,000 purchase price: 0% stamp duty
£300,000.01 to £500,000: 5% (on that portion of the purchase price)
If you buy a first home which costs more than £500,000, then you won't benefit from any change, and will be buying under the standard system, which applies to non-first time buyers too. This works as follows:
Up to £125,000 purchase price: 0% stamp duty
£125,000.01 to £250,000: 2% (on that portion of the purchase price)
£250,000.01 to £925,000: 5% (on that portion of the purchase price)
£925,000.01 - £1,500,000: 10% (on that portion of the purchase price)
£1,500,000.01+: 12% (on that portion of the purchase price)