Following yesterday’s budget the Lord Chancellor has implemented a change to the Stamp Duty Land Tax (SDLT) payable by First Time Buyers.

How is this going to affect you?

Up until yesterday, SDLT has been payable on all properties purchased for a more than £125,000.00.

The changes implemented in this most recent budget have increased that threshold to £300,000.00.

This is on the condition that you are buying your first home which is to be used as your only or main residence, for a price of £500,000.00 or less and completion takes place on or after the 22^nd November 2017.

If you are purchasing the property jointly, then each of you need to be a first time buyer intending to occupy the property as your only or main residence.

Are you a first time buyer?

In order to qualify for this SDLT relief, you will be a first time buyer if:

• You or, where there are two or more of you purchasing, you are all individuals, i.e. not a company.
• You or, where there are two or more of you purchasing, none of you have either alone or with others previously had a major interest in a dwelling or equivalent land situated anywhere in the world. Including, any properties acquired by inheritance or gift.

Example:

You are buying your first home for a price of £450,000.00. SDLT will be calculated as follows:

0% on the first £300,000.00

5% on the remaining £150,000.00

Total Payable £7,500.00

This results in a total saving of £5,000.00 from the previous rules.

However, if the property you are purchasing is over £500,000.00, you will not be eligible for any reduction and the usual SDLT rules will apply.     

If you’re moving house or buying for the first time, then get in touch with our residential team;

Cannock – 01543 466 660

Lichfield – 01543 263 456

The contents of this article are for the purposes of general awareness only.  They do not purport to constitute legal or professional advice.  The law may have changed since this article was published.   Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.