Solicitor Philip Horlock from Gilbert Stephens’ Okehampton branch specialises in conveyancing and property law. He explains what Philip Hammond’s Budget announcement will mean for first-time buyers.
In his Budget speech, the Chancellor of the Exchequer announced the immediate introduction of tax relief for first-time buyers. With immediate effect, first-time buyers paying £300,000 or less for a residential property will pay no Stamp Duty Land Tax (SDLT). First-time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount in excess of £300,000.
Before the Budget, first-time buyers would have paid SDLT at the current standard rates of 2% on the portion of the purchase price over £125,000 and up to £250,000, and then 5% on the portion of the purchase price over £250,000.
A first-time buyer is defined as someone who has never owned a freehold or leasehold interest in a residential dwelling in the United Kingdom or anywhere in the world, and who intends to occupy the property as their main residence. All buyers in a joint purchase must be first-time buyers to be eligible for the tax relief.
First-time buyers purchasing property for more than £500,000 will not be entitled to any tax relief and will pay SDLT at the current standard rates.