Buying property: First-time home-buyers got a surprise present from the Chancellor

First-time home-buyers got a surprise present from the Chancellor in his first Autumn Budget. From 22 November 2017, there is an exemption from Stamp Duty Land Tax (SDLT) on the first £300,000 when buying a home, where the total price of the property is not more than £500,000. 5% is payable on any amount of the purchase price in excess of £300,000.

Tip
Many parents help when it comes to buying a first property for children. To take
advantage of the SDLT exemption, parents need to be excluded from part ownership of
the property (assuming they have bought a home before), or the exemption will be lost.

Scotland and Wales
With devolved taxes, buying a property in Scotland and Wales can bring different tax consequences. Land and Buildings Transaction Tax (LBTT) applies to Scotland. The Scottish Draft Budget 2018/19 provides for LBTT relief for first time buyers of properties up to £175,000, subject to a government consultation before the relief launches in
2018/19.

Welsh first-time buyers benefit from the Budget SDLT relief until 31 March 2018. Land
Transaction Tax (LTT) replaces SDLT in Wales from 1 April 2018. The starting rate for
LTT will be £180,000, benefiting not just first-time buyers, but other homebuyers
in Wales. A higher rate, of 3% over standard stamp duty land tax rates for additional residential properties, also applies to purchases in Scotland and Wales.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s