In its Autumn 2017 Budget, the Government has provided relief for first-time property buyers with the aim of reducing the upfront costs of a property purchase and supporting home ownership.
A first-time buyer is defined as an individual who has never owned an interest in a residential property in the UK (or indeed anywhere else in the world) and who intends to occupy the property as their main residence.
From 22 November 2017, first-time buyers purchasing a home for less than £300,000 will not pay any Stamp Duty. First-time buyers paying between £300,000 and £500,000 will pay Stamp Duty at the rate of 5% on the amount over £300,000. Normal rates of tax will still be paid for those purchasing over £500,000.
For example, a buyer purchasing a residential property for £400,000 will pay £10,000 in Stamp Duty. Now with the relief, a first-time buyer will pay £5,000 – which is a significant saving.
The relief is claimed in the Stamp Duty Land Transaction Return which is filed with HMRC following completion of the purchase, notifying the Revenue of the property transaction. The legal advisor will draft this as part of their service in the house buying process.
If you would like a quote for a property-related matter, please contact our Property Department on 01296 747151 (Stone) or 01494 870075 (Chalfont St Giles).