First-time buyers will pay zero stamp duty on the first £300,000 of any home that costs up to £500,000 with immediate effect, the Chancellor announced in yesterday's Autumn Budget. This means on a home worth less than £300,000, you'll pay no stamp duty.

What is stamp duty?

Stamp duty land tax is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate at which you'll pay the tax varies based on the property price.

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 buying properties costing up to £500,000 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 only)

If you buy a first home costing more than £500,000, you won't benefit from any change and will be buying under the standard system, which applies to non-first-time buyers too.

Who counts as a first-time buyer?

Anyone who hasn't owned a property before anywhere in the world, whether bought or inherited.

You also won't qualify for the discounted rates if you're buying to let – even if it's your first purchase. The property you're buying needs to be used as your main residence.