If you’re still looking to buy your first home, we’ve got some great news for you! The Government have just announced that they will be abolishing Stamp Duty for first time buyers on homes up to £300,000, which means you could be saving up to £5,000 – your first step on the property ladder just got more affordable.
Stacy Dornan from The New Homes Group who specialise in new build mortgages says “This announcement, as part of today’s Budget will be a source of celebration for those aspiring to own their own home. By chopping this major fee out of first-time home purchase, the revamp of rules sees those at the foundation of the property market benefit from a significant financial boost. Just last month HM Land Registry published the latest data on house prices, revealing that the average property price in England now stands at £243,520. Following today’s news, first time buyers purchasing at this price will save themselves £2,370. This is a positive message for first time buyers and another great incentive to help people onto the property ladder.”
If your first home costs between £300,000 to £500,000, no stamp duty will be paid on the first £300,000. See https://www.gov.uk/stamp-duty-land-tax for full details.
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When do the new Stamp Duty rules apply?
You will benefit from the exemption from 22nd November 2017.
What happens if I completed yesterday or recently and have not yet filed my stamp duty return?
Unfortunately you will lose out. The tax cut applies to the date of completion, so if it’s before 22nd November 2017, you will not benefit from the exemption.
What happens if my partner isn't a first-time buyer but I am?
Unfortunately the document detail states that where purchases are in joint names, each party must be a first-time buyer.
Does the exemption apply if I am buying with my parents?
If your parents are helping you simply by giving you money, you will benefit from the exemption. However, if they are purchasing part of the property alongside you, the benefit won't apply.
What if I am still renting and my first house purchase will be a buy-to-let?
Unfortunately the exemption will not apply to you. Although the purchase will be your first, the Government defines a first-time buyer as someone who has never owned a freehold or leasehold and is "purchasing their only or main residence". So, if you're buying a property to rent out this rule doesn't apply to you.