What is the new relief
As of 22 November 2017, first-time buyers in England and Wales of residential property have benefitted from welcome relief from Stamp Duty for purchases under £300,000 and relief on the first £300,000 if buying property up to £500,000.
The Stamp Duty threshold is currently £125,000 whereas the threshold for first-time buyers is £300,000 thus allowing a further £175,000 before Stamp Duty becomes payable.
How much would I need to pay?
You can use HM Revenue and Customs Stamp Duty calculator to work out how much tax you will need to pay- https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
What are the eligibility requirements?
HM Revenue and Customs specify the following eligibility requirements :
· there is a purchase of a single dwelling for not more that £500,000
- the purchaser(s) must be an individual who intend to occupy the property as their main dwelling and all must be first time buyers
- the purchase is not linked to any other land transactions, except for –
o land that is or forms part of the gardens or grounds of the dwelling, or
o land that subsists for the benefit of either the dwelling or its garden and
Further information on eligibility can be found at- https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note
Will this help me as a first time buyer?
It is estimated that the majority of first-time buyers will be exempt from paying any Stamp Duty at all and almost all first-time buyers will at least benefit from reduced rates.
How do I claim the relief?
The relief is claimed in the Stamp Duty Land Transaction Return which we can complete on your behalf as part of our conveyancing work for you. Prior to us submitting these forms on your behalf, we ask that you sign a declaration to confirm that the information contained in the forms is accurate.
If you are looking to purchase a property, please do speak to a member of our Conveyancing Quality Scheme accredited Conveyancing team on 01325 281111 or 01748 830000.
Diane Hall is a Solicitor within our property department specialising in residential and commercial property matters.