It's a tax on sellers, with some of the proceeds going to FTBs
Lets say two people are after the same house, both are willing to spend 500k on it.
Person A: Next time buyer, has a budget of 500k after legal/moving costs, that leaves 14200 for stamp duty, and that means you can pay 485,500 (plus 14,275 stamp = 499,775).
Person B is an FTB, they have the same 500k budget but can bid upto 490k due to lower stamp
As such person B can bid 486k, thus offering more than Person A, getting the property.
If both were Next Time Buyers the seller would get 500 less
If both were FTBs the seller would get 4500 more
If there was no stamp duty they would both be able to pay 500k, the seller would get 14k more
Lets say two people are after the same house, both are willing to spend 500k on it.
Person A: Next time buyer, has a budget of 500k after legal/moving costs, that leaves 14200 for stamp duty, and that means you can pay 485,500 (plus 14,275 stamp = 499,775).
Person B is an FTB, they have the same 500k budget but can bid upto 490k due to lower stamp
As such person B can bid 486k, thus offering more than Person A, getting the property.
If both were Next Time Buyers the seller would get 500 less
If both were FTBs the seller would get 4500 more
If there was no stamp duty they would both be able to pay 500k, the seller would get 14k more