We have all probably heard the great news by now; in his Budget Statement earlier today (22nd November 2017), Chancellor Phillip Hammond announced that Stamp Duty Land Tax (SDLT) is to be abolished for First Time Buyers on all properties up to the value of £300,000, and to be reduced on all properties up to £500,000, with immediate effect.
This is tremendous news if you are a First Time Buyer.
Until this announcement, SDLT was calculated on a sliding scale for all Buyers, with the first £125,000 of a property’s value attracting 0% tax, the next £125,000 attracting 2% and the next £675,000 (so up to a total value of £925,000) attracting 5%.
From today, for First Time Buyers only, the 0% extends to a £300,000 property, provided the value of the property is not more than £500,000.
The effect of this is that a First Time Buyer will now save up to a maximum of £5,000 Stamp Duty on any property below the new threshold. For example, SDLT is from today £5,000 on a property of £400,000, as opposed to £10,000 paid by non-First Time Buyers.
These changes apply in England, Wales and Northern Ireland only, as the Scotish Government, not the UK Government, sets Stamp Duty rates north of the border.
Other measures introduced in today’s Budget which are also worthy of note include:
The impact of this announcement on the abolishment of SDLT for First Time Buyers on properties up to £300,000 on the property market is expected to be significant as it makes the much-desired goal of climbing the property ladder a little bit more achievable. Our Residential Property Team expects to see a rise in the number of First Time Buyers and encourages those looking to seize the opportunity presented by the 2017 Budget to ensure that they seek legal guidance from reputable firms.
At Arnold Thomson, we have an excellent Team of Residential Property experts who will be happy to assist with your transaction, guiding you through the legal process and ensuring that your best interests are protected at all times.