What has changed?
The Chancellor announced that stamp duty was abolished for first time buyers purchasing a property worth up to £300,000. Therefore no first time buyers purchasing a property up to £300,000 will pay any stamp duty.
Furthermore no first time buyers purchasing a property up to £500,000 will pay any stamp duty on the first £300,000.
Purchases over the threshold of £300,000 will attract stamp duty at 5%, in the £300,000-£500,000 band.
No purchase over £500,000 will attract any stamp duty discount.
As a result of the Budget, any first time buyers purchasing a property between £125,000 and £500,000 will make a saving.
A purchase at a price of £200,000 would previously have attracted stamp duty of £1,500 previously. This will no longer be payable by first time buyers.
A purchase at a price of £300,000 would previously have attracted stamp duty of £5,000. Now there is no longer any tax payable for first time buyers.
A purchase at a price of £400,000 would previously have attracted stamp duty of £10,000. Now, only £5,000 tax would be payable because 5% tax is charged on the £100,000 over the £300,000 threshold.
Will I be classed a first time buyer?
A first-time buyer is a person who has never owned any property before and who is purchasing their only or main residence, but not a buy-to-let property.
The Treasury says any residential property owned anywhere in the world is taken into account when determining whether you are a first time buyer.
In the case of joint purchasers, all would need to be first-time buyers to qualify for the new stamp duty exemptions.
If you require any advice in relation to stamp duty or any other conveyancing matter, please contact our specialist property team on 033 03001103 or request a callback.