Stamp Duty for First-time buyers
Stamp Duty is a lump sum tax that anyone buying a property or land costing more than a set amount has to pay.
As part of the Government’s commitment to support home ownership and particularly first-time buyers, from the 22nd November 2017, first-time buyers paying £300,000 or less for a residential property will pay no Stamp Duty.
This relief will save the average first-time buyer purchasing a £210,000 property £1,640 in Stamp Duty, reducing the upfront costs that need to be paid.
First-time buyers paying between £300,001 and £500,000 will pay Stamp Duty at a reduced rate of 5%, on the amount of the purchase price in excess of £300,000.
However, it is not just first-time buyers who are set to benefit from this legislative change. Sellers of typical “first-time buyer homes” may now find it easier to move as they could have a wider choice of potential buyers.
Are you eligible for this relief?
- Are you/and the person you are buying with a first-time buyer?
- Is the residential property worth £500,000 or less?
- Do you intend to occupy the property as your main residence?
- Is the effective date of the transaction on or after the 22nd November 2017?
A calculator is available on the HM Revenue & Customs website which calculates the Stamp Duty for first-time buyers who are eligible to claim the relief.
The relief must be claimed on a Land Transaction return by entering relief code 32 at question 1.9.
If you have any questions about buying a property or would like us to provide you with a competitive quotation for a purchase, please do not hesitate to contact us or call in for a free and friendly chat.
Hyde office: 0161 368 631 Ashton office: 0161 330 2875
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article