In Autumn 2017, the Chancellor of the Exchequer announced relief from Stamp Duty Land Tax (SDLT) for first time buyers. If a first-time-buyer of residential property purchases a property for less than £500,000.00 on or after 22nd November 2017, that buyer can now claim first-time-buyers’ relief!
Who would be classed as a first-time-buyer?
A first-time-buyer means that a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world. This includes an interest which arose from a gift or inheritance or by a financial institution on behalf of a person under an alternative financial scheme.
How does the SDLT work?
The relief is simple and can be calculated as follows:
Purchase of a residential property up to £300,000.00 = 0% SDLT
Purchase of a residential property up to £500,000.00 = 0% SDLT on the first £300,000.00 and 5% SDLT on the remaining balance up to £500,000.00.
Top Tips to Remember:
- You cannot claim first-time-buyers’ relief if you or your spouse is not a first time buyer, regardless of whether your spouse will be purchasing the property with you or not. Although, speaking to a Conveyancing Solicitor, such as Michael Oduwole, could reveal other reliefs or benefits you may be entitled to.
- First-time-buyers are automatically exempt from paying SDLT if they are purchasing a residential property for less than£300,000.00.
- You must have the intent to occupy the property as your main residence.
- SDLT MUST be paid within 30 days of the purchase.
More information on Stamp Duty Land Tax relief for first-time-buyers, go to the Government Official Guidance Notes by Clicking here. Or, to speak to somebody about your residential property purchase, call our Head of Conveyancing on 01634 854 381 or email email@example.com .