Budget update on Stamp Duty Land Tax (SDLT) for first time buyersNovember 24, 2017
The residential property sector has reacted positively to the Chancellor’s Statement on 22 November 2017 in relation to SDLT reform for first time buyers.
Previously homes valued up to £125,000.00 were exempt from SDLT, but for homes in excess of £125,000.00 first time homebuyers would pay a single rate on the entire property value depending on the band into which the value of the property fell.
However from today:-
- Stamp duty will be abolished with immediate effect for first time buyers purchasing properties worth up to £300,000.00.
- To help those in London and other expensive areas, the first £300,000.00 of the cost of a £500,000.00 purchase by all first time buyers will be exempt from stamp duty, with the remaining £200,000.00 incurring 5%.
- 95% of all first time buyers will benefit, with 80% not paying stamp duty.
- Reduction will apply immediately in England, Wales and Northern Ireland although the Welsh government will have to decide whether to continue it when stamp duty is devolved in April 2018. The change to SDLT for first time buyers will not apply in Scotland.
This article has been produced for general information purposes and further advice should be sought from a professional advisor.
For further advice please contact the residential property team at Cleaver Fulton Rankin on 028 9024 3141
Janet Knox, Residential Property Para Legal, Cleaver Fulton Rankin