Budget November 2017: Stamp Duty relief for first time Buyer

Budget November 2017: Stamp Duty relief for first time Buyer

The government has abolished Stamp Duty Land Tax (‘SDLT’) also known as stamp duty for first time buyer purchasing homes for up to £300,000.00.

First time buyer wanting to purchase a Property up to £500,000 will not pay SDLT on the first £300,000 and 5% from £300,000- £500,000.

The Treasury estimates that this change will help over one million first time buyers get onto the property ladder over the next five years.

The measure is aimed at helping more first time buyers get on to the property ladder by reducing their upfront cost.

The relief applies only if the following conditions are met:

• Transactions which completed after 22nd November 2017;
• Where an individual or individuals jointly purchase wholly residential property, at a price of not more than £500,000;
• Where that individual or individuals intend to occupy the property as his/her or their only or main residence;
• And where that individual or individuals has or have not, whether alone or with others, previously acquired a freehold or leasehold interest in residential property in the UK (except a lease with less than 21 years to run) or on equivalent interest anywhere in the world.

How does it work?

First time buyers will need to declare that they have never owned a property either in the UK or abroad.
Full Stamp Duty relief is available up to £300,000, with reduced liability up to £500,000. Any purchases above £500,000 will attract the normal stamp duty rates on the whole purchase price.

Joint Purchasers

If a property is being purchased by more than one individual then all parties will need to be first time buyers to qualify for the relief.

Published on 18/12/2017

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