From 22 November 2017 first time buyers paying £300,000 or less for a residential property will pay no Stamp Duty Land Tax (SDLT).
This measure will have effect for transactions with an effective date (usually the date of completion) on or after 22 November 2017. This measure does not apply in Scotland. SDLT was devolved to Scotland on 1st April 2015. This measure will apply in Wales until 1 April 2018, when SDLT will be devolved to Wales.
A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.
First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5,000 compared to the amount of SDLT they would have previously paid.
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.
The revised rates and thresholds for residential property purchases worth £500,000 or less by first time buyers will be as follows:
|Portion of consideration
|Current standard rates
|New rate for first time buyers
|Up to £125,000
|Over £125,000 and up to £250,000
|Over £250,000 and up to £300,000
|Over £300,000 and up to £500,000
The relief must be claimed in an SDLT return.
For more information on Residential Property please contact Tina Crow