Chancellor Philipp Hammond announced new changes to help first-time buyers get on the property ladder in his Autumn Budget Statement. Here is everything you need to know:
What is Stamp Duty?
Stamp duty is a tax that you have to pay when you buy a residential property or a piece of land that costs more than £125,000 or £40,000 for second homes in England, Northern Ireland and Wales. The tax applies to both leasehold and freehold properties.
When do you have to pay?
You have to submit your Stamp Duty Land Tax return and pay what you owe within 30 days of completing the purchase of your property. It is your responsibility to make sure that everything is submitted on time. If the price of your property is below £125,000 you will need to submit a return but won’t have to pay anything.
What does the Stamp Duty change mean for first-time buyers?
First-time buyers in England, Northern Ireland and Wales spending up to £300,000 on a property will no longer pay the tax, while those paying up to £500,000 in high-price areas will only be charged on the part of their purchase over £300,000.
Who qualifies as a first-time buyer?
According to HM Revenue & Customs, a first-time buyer is ‘ an individual who has never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.’
How much will first-time buyers save?
Under the new system, first-time buyers can save up to £5,000, which is the amount usually due for a £300,000 property.
Our advice to first-time buyers
Before buying a house it is very important to work out all the costs involved. Make sure to be as flexible as possible when it comes to the type of property you’re looking for. Opting for an open-minded approach will increase your chances of finding your new home. Stan Tonchev, Associate Director at Kingsley Hamilton Estates commented: “ The new Stamp Duty changes will help first-time buyers save thousands of pounds on the purchase of their first property. This will make getting on the property ladder more affordable for first-time buyers buying a property worth up to £300,000, or up to £500,000.”
Are you thinking about buying your first property? Call the Kingsley Hamilton Estates team today on 020 7078 0214, or email firstname.lastname@example.org and we will be in touch shortly.