First Time Buyer SDLT Changes
- AuthorJess Reynolds
During the 2017 Autumn Budget the Chancellor of the Exchequer announced the First Time Buyer Stamp Duty relief which came into effect as of the 22nd November 2017. There has been a mixed response to this new incentive which has been widely praised and conversely criticised by the media.
This change means that people who purchase their first residential property for £300,000.00 or less will pay no Stamp Duty Land Tax meaning savings of up to £5,000.00. First Time buyers paying between £300,000.00 and £500,000.00 will pay Stamp Duty at 5% on the amount of the purchase price in excess of £300,000.00. This means a reduction of £5,000.00 compared to the amount of Stamp Duty Land Tax they would have previously paid. At first glance this would seem to be a very positive incentive to help First Time Buyers gain their first step on to the property ladder as the initial cost for purchasing a property is reduced by a substantial amount.
Following the release of the budget an estimated 16,000.00 First Time Buyers have already benefitted from the relief yet there are, of course, cynics who are not as positive about the change. The question which remains unanswered at this early stage of the incentive, is will vendors simply increase property prices to ensure First Time Buyers pay higher purchase prices? This is a question that will only be answered over time.
Hughes Paddison have already helped many First Time Buyers benefit from the Stamp Duty Relief. If we can assist you, please do not hesitate to contact the residential property team.