Great news for first time buyers!

As from 22 November 2017, most first-time buyers are able to purchase a property without the necessity of paying Stamp Duty Land Tax (SDLT).

The current SDLT threshold is £125,000.00 for residential properties and £150,000.00 for non-residential land and properties.  First-time buyers are now able to claim relief to reduce the amount of tax payable with most making no payment at all.  To qualify, the purchase must be completed on or after 22 November 2017 and must be for a price of no more than £500,000.00.

The purchaser (or all purchasers if more than one) must never have owned any property anywhere in the world previously and must be an individual or individuals.  This includes previously inherited or gifted properties.   Further, the dwelling must be the purchaser’s or purchasers’ only or main residence, it must be a single dwelling and the transaction must not be linked to any other transaction.

The current rates and the new first time buyer rates are calculated as follows:

Portion of consideration Current standard rates Rate for first time buyers
Up to £125,000

0%

0%

Over £125,000 and up to £250,000

2%

0%

Over £250,000 and up to £300,000

5%

0%

Over £300,000 and up to £500,000

5%

5%

The H M Revenue & Customs’ website has a calculator to assist and this can be found here:

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

The revised rates mean the no SDLT will be payable on a purchase of up to £300,000.00 and a reduced rate is payable between £300,000.00 and £500,000.00.

The relief must be claimed when submitting a return for SDLT following completion of a purchase and the new rate due paid on submission.

Please note that the above information is a general guideline only and specific information can be provided on request.  If required, please contact the Residential Conveyancing Department for assistance.

For further information contact Alison Smith on 0191 261 0096 or by email at Alison.smith@markswattsmorse.co.uk.