1st December 2017
One of the biggest announcements from chancellor Phillip Hammond’s autumn budget was the immediate scrapping of stamp duty land tax for first-time buyers purchasing homes worth up to £300,000.
This has come as welcome news to the UK property market and is hoped to bring a much-needed boost by helping over a million first time buyers.
Our residential property lawyers at Myers & Co Solicitors in Stoke on Trent, Staffordshire, explain what stamp duty is and how the new rules will work in practice.
Stamp duty land tax is a tax payable on completion of all land transactions in the UK, except Scotland. Prior to these changes, anyone buying a property was exempt from stamp duty on the first £125,000 of the purchase price, but had to pay stamp duty on a sliding scale on anything over that amount.
However, the new rules mean that from the 22nd November 2017 anyone buying their first home that is to be their main residence, will no longer have to pay any stamp duty on purchases up to the value of £300,000, saving an average of around £1,581 for first time buyers in Staffordshire.
Those buying in more expensive places will be exempt from the tax on the first £300,000 of a property worth up to £500,000.
The stamp duty rules remain unchanged for anyone who has previously owned a property and is buying a new home or a second home.
‘The raising of the threshold at which stamp duty is payable is a real boost for first time buyers and will mean that they have greater spending power,’ says Kerry.
The table below illustrates the new changes in full and how much first-time buyers will save compared with before the budget:
|Stamp duty land tax rate before budget||Stamp duty land tax rate after 22 November 2017|
|£158,153 (average house price in Staffordshire)||£1,581||£0|
|Above £500,000||Stamp duty due is unchanged on purchases above £500,000|
Figures from gov.uk
If you are thinking about buying a house or buying a flat in Stoke on Trent, Staffordshire or Cheshire, working out your costs such as stamp duty land tax, search fees and survey charges from the outset will help you determine the budget for your purchase.
At Myers & Co, when you request a conveyancing quote we will work out if there is any stamp duty land tax payable as part of our service. For a quick, no obligation conveyancing quote contact us on 01782 525000 or email email@example.com.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.