During the Autumn Budget last week, the government announced a new relief from stamp duty for first time buyers. This includes first time buyers in England, Wales and Northern Ireland.
In the Autumn Budget the government announced that all first time buyers purchasing a property under £300,000 would pay no stamp duty.
Their definition of a first time buyer is a person or people who have never owned or had an interest in a residential property either here in the UK or abroad.
There are, of course, some rules around how this will work and conditions about eligibility. These are:
- Stamp Duty relief for first time buyers only applies to completions on or after 22 November 2017
- It must be a residential property
- If you are buying a property with someone else, you must both be first time buyers
- The purchase price must be £500,000 or less. Above £500,000, first time buyers will pay normal stamp duty rates
- The property being purchased must be for your main or only residence
- You must not have owned any other property before, inherited any property, held any property under a trust or had any property gifted to you
If you meet the conditions above, then the stamp duty relief applies.
There are some additional conditions on purchase price. Where the purchase price is £300,000 or less, you won’t pay any stamp duty. But if the purchase price is between £300,001 and £500,000, then tax is payable at 5% on the part of the purchase price over £300,000.
You can find a stamp duty calculator on HMRC’s website so you can calculate exactly what you’ll pay, depending on your purchase price and you can read the detail on the relief and who is eligible, along with some FAQs here.
This is a real boost to first time buyers. It may only be a small saving, but it could mean first time buyers will now find it easier to get onto the housing ladder.
In places like London, where house prices are high, this won’t have such a big impact but calculated using the average house price, which is now £211,085, first time buyers can expect a saving of more than £1,700.
If you’re a first time buyer and you’d like a quote, call our conveyancing team now on 0117 926 4121 or make a Free Online Enquiry.