The Autumn Budget brought good news to first time buyers.
On November 22, The Chancellor, Philip Hammond, announced that with immediate effect, he will remove the requirement to pay Stamp Duty Land Tax (SDLT) for all first time buyers making home purchases worth up to £300,000.
First time buyers purchasing properties costing £300,000 to £500,000 will also see a reduction in the amount they pay
It is hoped that the relief will help over a million first-time buyers to get onto the housing ladder with a first home of their own over the next five years.
Zoë Baxter, who is the head of the Residential Property team said: “This is great news for many first time buyers.
“If you are buying your first property and it costs from £125,000 up to £500,000, you should save money, but do take advice from your Legal Adviser for some purchases particularly Shared Ownership properties and also in regard to the criteria to qualify as a First Time Buyer.”
For purchases completing from November 22 onwards, The Chancellor relieved SDLT on the first £300,000 for properties valued up to £500,000, for first time buyers.
“Until the Autumn Budget, a £200,000 property would have had a £1,500 SDLT bill, while a £300,000 purchase would have attracted a £5,000 SDLT fee,” explained Zoë.
“For properties valued above £300,000, the SDLT will be paid at five percent in the £300,000-£500,000 band. This means a £10,000 SDLT bill on a £400,000 property has been reduced to £5,000, while a £15,000 SDLT bill on a £500,000 home, is now £10,000.
“However, if the purchase price exceeds £500,000 then the full SDLT rate will apply without any relief."
If you are thinking about buying your first home, then please contact Zoë by calling 01256 854623 or email her at firstname.lastname@example.org
To find out more about our residential property services visit www.phillips-law.co.uk/residential-property-services