Most first-time buyers set to benefit from the Autumn Budget 2017
The Autumn Budget 2017 has been announced and a stamp duty system has been put into place to help the majority of first-time buyers get onto the property ladder.
With immediate effect, those buying their first home in England, Wales and Northern Ireland will pay zero stamp duty on purchases of up to £300,000 and 5% of the portion if over £300,000 and up to £500,000.
The changes will mean 80% of first time buyers could be exempt from stamp duty tax and save them up to £5,000 for a property purchase price of £300,000.
With change can come some uncertainty, so we thought we would help by answering some questions you may have…
I am buying my first house. How much Stamp Duty Land Tax (SDLT) do I have to pay now?
The new stamp duty rates for first-time buyers in England, Wales and Northern Ireland, who are purchasing up to £500,000, will pay as follows:
Up to £300,000 purchase price: 0% stamp duty
£300,000 to £500,000: 5% (on that portion of the purchase price)
I’m buying a home with someone who is not a first-time buyer, do we benefit from the new system?
Sadly no, both purchasers must be first-time-buyers in order to qualify for the lower rates.
What if my first home is costing over the £500,000 threshold?
Unfortunately, you will not benefit from the new changes to the Stamp Duty Land Tax and the standard system will apply.
The standard Stamp Duty Land Tax system
The following standard stamp duty system will apply if you are purchasing your first home and the purchase price is over £500,000 OR you are not a first-time-buyer;
Up to £125,000
The next £125,000
(the proportion from £125,000 to £250,000)
The next £675,000
(the proportion from £250,000 to £950,000)
The next £575,000
(the proportion from £925,000 to 1.5 million)
The remaining balance from 1.5 million
Property value at £550,000
0% on the first £125,000
2% on the next £125,000
5% on the next £675,000
TOTAL TAX DUE:
Please note, Stamp Duty Land Tax is very individual to each client, other questions may be required to confirm the correct tax is being paid.
Osborne Morris & Morgan- the conveyancing experts
We are proud to provide outstanding residential conveyancing services to clients in Leighton Buzzard, Milton Keynes, Bedfordshire and beyond.
When you instruct Osborne Morris & Morgan for any of your conveyancing matters, you will find that we provide a proactive service and will communicate clearly with you all the way.
You will be looked after by our small team of dedicated property solicitors who will keep you fully informed every step of the way.
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To speak to one of our Conveyancing experts, please contact us on 01525 378177.