Stamp Duty Relief for First Time Buyers
- AuthorAbigail Salter
With the UK’s annual budget for 2018 having been announced, one topic has caused quite the talking point.
On 22 November 2017, Stamp Duty Land Tax was abolished for first time buyers purchasing homes up to £300,000 with immediate effect. This is estimated to assist approximately one million first time buyers within the next five years.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax which must be paid on purchases of property and land over a certain price in England, Wales and Northern Ireland. SDLT is calculated on a sliding scale based on the value of the property being purchased.
SDLT was previously payable on all residential property purchases over £125,000.
Does the relief apply to me?
- If you are a first time buyer you now will not be required to pay SDLT on property purchases up to £300,000. If you are purchasing property between £300,000 and £500,000 in value, SDLT will not be payable on the first £300,000 and 5% SDLT will be payable from £300,000 to £500,000.
- If the property you plan on purchasing is over £500,000 the relief will not be available to you and the standard rates of SDLT will apply. The relief will also not apply to the purchase of non-residential or mixed use properties.
- You must have never owned a freehold or leasehold interest in a dwelling anywhere in the world before.
- The property you are buying must be where you intend to live as your main residence. The purchase must be by an individual and, where you are purchasing the property with a partner/friend/family member(s), all individuals purchasing must be first time buyers to qualify.
This relief is available for all those who qualify, on any purchase with a completion date on or after 22 November 2017.
The effect in Wales
The relief will be available for all first time buyers who meet the criteria from 22 November 2017 to 1 April 2018. From 1 April 2018 the Welsh Government plans on introducing Land Transaction Tax, further information regarding this new taxation is currently awaited.
More information regarding the relief can be found on the Government’s website https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/661728/8274_guidance_note_SDLT_relief_for_first_time_buyers.pdf
Abigail Salter is an integral member of the Residential team here at JCP Solicitors. If you would like to get a quote or discuss this topic further, please contact any of our offices listed below:
- Swansea: 01792 773773
- Cardiff: 02920 22 5472
- Carmarthen: 01267 234022
- Caerphilly: 02920 860628
- Cowbridge: 01446 771742
- Haverfordwest: 01437 764723
- Fishguard: 01348 873671
- Pontypridd: 01443 408455
Alternatively, please feel free to contact us via email at firstname.lastname@example.org