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SDLT Relief for first-time buyers

SDLT Relief for first-time buyers

The Chancellor announced the UK’s Budget yesterday and it was much more than Brexit.  The obvious challenge faced by Government was the downgrade to the economic forecast.  However Phillip Hammond set his announcement of the Stamp Duty Land Tax (SDLT) reform at pride of place in his speech.

The complete Annual Autumn 2017 Budget can be found here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/661480/autumn_budget_2017_web.pdf

SDLT Relief –

Prior to the recent announcement first-time purchasers paid SDLT on purchases above £125,000.  As of 22nd November 2017 all first-time residential property purchases up to £300,000 will not incur SDLT and £5,000 less SDLT will apply to purchases between £300,000 - £500,000.

To put this into context this is the largest ever increase in the point at which first-time purchasers become liable for SDLT and it provides first-time purchasers with immediate support.  A first-time purchaser buying their first home at the UK average house price of £223,000 on Tuesday (before the Budget) would pay £1,960 in SDLT whereas as of yesterday they would pay no SDLT whatsoever.

In Summary –

  •         The average first-time purchaser in every region of England (outside London), Wales and Northern Ireland will pay no SDLT
  •         The average first-time purchaser in London will pay £5,000 less SDLT
  •         It’s projected that this relief will assist over a million first-time purchasers to get onto the housing ladder over the next five years
  •         The relief formally came into effect at 00:01am on 22nd November 2017
  •         A first-time purchaser is defined as someone who has never owned a freehold or leasehold interest in a dwelling before and who is purchasing their only (or main) residence – residential property anywhere in the world is counted when considering whether a purchaser is a first-time purchaser
  •         Where there are joint purchasers, all purchasers would have to be first-time purchasers to benefit from the relief

The Government’s SDLT calculator can be found here - https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

Are you a first-time purchaser?  Would you like guidance?  Please do not hesitate to contact Chris Maddison at chris.maddison@marcusbaum.com or by telephone on 01702 221972