The Budget: First Time Buyers & Stamp Duty
Relief for first time buyers?
In a bid to revitalise the housing market and inject some cash in to the economy, Philip Hammond has today abolished stamp duty for first-time buyers of properties up to £300,000.00. The change is effective from Midnight tonight, meaning any purchases awaiting completion will benefit from the change.
In London (and other high value areas) the Stamp Duty limit will be £500,000. Therefore, first time buyers paying between £300,000 and £500,000 in these areas will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5,000 as opposed to the tax which would have been payable before the change.
An example of how this will assist is as follows:-
|Purchase Price:||SDLT payable 21/11/2017||SDLT payable 22/11/2017|
First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.
In order to qualify as a first time buyer, you must not have owned an interest in a residential property in the United Kingdom or anywhere else in the world and you must intend to occupy the property as your main residence.
If you are looking to purchase your first home, our team of experts will be happy to help, call 01202 525333 or visit our Property Purchases & Sales page.