Great news for first time buyers

Philip Hammond MP announced yesterday in his Budget a change to Stamp Duty Regulations which will see first time buyers not paying Stamp Duty Land Tax (“SDLT”) on purchases of up to £300,000.

The surprise announcement is reported in national media to mean a stamp duty cut for 95% of all first-time buyers, with 80% now paying no stamp duty at all.

First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5,000 compared to the amount of SDLT they would have previously paid. First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

This is great news for first time buyers, but those who have ever owned property anywhere in the UK or elsewhere in the world, inherited a property or are a beneficiary of a trust that owns a property will not qualify for the relief.

For further information, contact a member of our Residential Property team.