Following the release of the new budget, first-time buyers are now exempt from Stamp Duty Land Tax on properties up to £300,000. This is fantastic news for those of you trying to get on the property ladder as it could lead to substantial savings when buying your first home!
From 22nd November 2017 onwards, all first-time buyer purchases up to £300,000 will attract no stamp duty charge at all. Even if you are making a bigger purchase, the new rules could still provide you with huge savings.
Any first-time buyers purchasing a house for between £300,001 and £500,000 will still be exempt from paying stamp duty on the first £300,000. They are then only required to pay a reduced 5% duty on the value between £300,001 and £500,000.
This means on the first-time purchase of a house for £380,000, the stamp duty tax would amount to just £4,000 (5% of £80,000).
The Government believes that this change should result in no stamp duty at all for 80% of first-time buyers, and 95% of first-time buyers will see at least some saving in the amount of stamp duty they pay. The maximum potential saving to buyers under this new stamp duty will be £5,000.
The Chancellor delivered this news as part of a promise that the Government will be focusing on helping the housing market generally in the coming months to get more people on the property ladder.
He was quoted as saying:
“This is our plan to deliver on the pledge we have made to the next generation that the dream of homeownership will become a reality in this country once again.”
Over the next five years. Mr Hammond has promised that at least £44 billion of capital funding, loans and guarantees will be used to support the UK housing market. Property experts are also saying that this news is also a big positive for current homeowners, as it should see a small rise in house values across the market.
So if you are thinking about getting on the property ladder as a first-time buyer, there has never been a better time to take your first step! If you’d like more information about the new rules on stamp duty, or just about your prospective purchase generally, call our Property Law experts, Debbi and Stephen, on 01268 692 255.
Whether you are looking to buy a first home or have conveyancing queries, Hook & Partners Solicitors will be happy to have a quick, no-obligation chat with you about the process and how we can help.
NB: Please note calculations are for illustrative purposes only and may vary depending on your circumstances.