First time buyers to benefit from changes in stamp duty
- AuthorLaura Kurowski
Following this week’s budget, stamp duty has been abolished with immediate effect for first-time buyers buying a property up to £300,000. The move is designed to encourage first time buyers to save for a house deposit.
According to Chancellor Philip Hammond, 95% of all first-time buyers will see their stamp duty cut, while 80% will pay none at all.
The new regulations - which apply in England and Northern Ireland (and in Wales up until the end of March) - follow the Government’s recent commitment to provide investment for an additional 300,000 new homes.
However, for most first time buyers (who buy for under £200,000) the savings will not be as high as some headlines suggest and many critics are still demanding an overhaul of the whole stamp duty system.
Stamp Duty: Relief for first time buyers
On residential properties costing no more than £500,000, first time buyers will pay no Stamp Duty on the first £300,000 of the purchase price, with the remainder being charged at 5%. No relief is available where the total purchase price exceeds £500,000.
The relief is not time limited and will apply to purchases made on or after 22 November 2017. First time buyers can use the gov.uk calculator to work out their stamp duty land tax liability.
For more information and expert advice on buying or selling your home, contact one of our conveyancing experts in Halifax, Huddersfield or Brighouse.