First Time Buyers will be rejoicing all around the Country following the news of last week’s budget. You could almost say that Christmas has come early..….…for some!
Stamp Duty Land Tax (SDLT) has been scrapped for First Time Buyers (FTB) up to a staggering £300,000.00.
This is a major saving as a house costing £300,000.00 could attract SDLT of £5,000.00.
If buying up to £500,000.00, then there is exemption up to £300,000.00 but you will pay SDLT on the additional £200,000.00. SDLT on a property costing £500,000.00 is currently £15,000.00 but for a FTB this will be now be reduced to £10,000.00.
The higher rates which were introduced in April 2016 still apply however where you own more than one property and if you are not replacing your main residence. This relief only applies to FTB’s.
As you may expect there is a criteria that you have to fulfil to be considered a FTB.
Three questions will be asked which are as follows: -
Have you ever:
- bought a property
- inherited a property and
- are a beneficiary of a trust that owns a property?
If the answer is no to all 3 questions then you are doing well but the final and quite essential question is whether the property you are purchasing is to be your main residence? If it is then good news, no SDLT for you! This has already helped numerous clients here and now they can spend that money on something much more exciting, which at this expensive time of year, I suspect will make a lot of people happy.
If you are buying jointly then it is important that you both must fit that criteria. If you are a FTB but your partner is not then I am afraid you will not be exempt and the normal rates of SDLT will apply. The saving only counts if everyone buying is classed as a FTB.
Are you unsure whether the relief applies to you? Then please do not hesitate to give us a call so we can discuss this further.