First Time Buyer Relief From Stamp Duty Land Tax
In the Budget announced on 22nd November 2017 the Chancellor of the Exchequer introduced a relief, that comes into effect immediately, from stamp duty land tax for first time buyers of a single residential property that is freehold or leasehold which they intend to occupy as their only or main residence.
A first time buyer is defined as being an individual who has not either alone or with other people acquired an interest in a residential property anywhere in the world.
This does not simply mean that you will qualify for the relief if you have never purchased a property because you will be classed as having an interest in land if you have inherited or been gifted a property or a share in a property.
If you are buying jointly with someone all of the purchasers must satisfy the first time buyer requirement.
If you qualify for the relief for purchases under the value of £300,000.00 no stamp duty will be payable.
If you are purchasing a property for between £300,000.00 and £500,000.00 you will pay 5% stamp duty on the amount above £300,000.00.
The stamp duty land tax due on a purchase of a dwelling for £350,000.00 would be:
On the First £300,000.00 0% NIL
On the following £50,000.00 5% £2500.00
Total Stamp Duty due – £2500.00
The relief will apply to purchases of single residential properties in England, Wales and Northern Ireland.
On properties purchased in Wales the relief will only apply until the stamp duty tax system is changed from the 1st April 2018.
A stamp duty calculator is available on the Inland Revenue’s website
Tollers are able to deal with your property purchase and can offer any advice you may require in relation to the relief announced or advice regarding stamp duty generally. Talk to Tollers.