In the 2017 Autumn Budget the Chancellor announced a Stamp Duty Relief for First Time Buyers.
This means that for any first time buyers buying their first home they will not have to pay any stamp duty land tax (SDLT) up to a purchase price of £300,000. Where the purchase price is over £300,000 but does not exceed £500,000 they will pay 5% on the amount above £300,000.
This is great news for all you first time buyers out there, but for us as Conveyancers there are a few things that we need to go through with you to ensure that you qualify.
On completion of any purchase of £40,000 and above we must complete a Land Transaction Return on your behalf which gives the HM Revenue & Custom all the information they need to know about your purchase. On this form we will need to enter a special first time buyer code to claim the relief.
Before we can complete the form and lodge the code, we will need to get you to sign a declaration to confirm that you are first time buyer and have never owned or previously acquired or had any major interest in a property before either in the UK or anywhere else in the world. This can include a property which you may have inherited and if this is the case then you are unable to claim first time buyer relief.
You must also declare that you intend to occupy the property as your only or main dwelling.
If you are buying the property jointly then both of you will need to be first time buyers and be able to declare as such to qualify for the relief. Unfortunately even if one of you may have owned and subsequently sold a property, thus being in the same position as a first time buyer you cannot claim the relief.
It is predicted that these new changes will help up to 95% of first time buyers in England, Wales and Northern Ireland and this relief applies to anyone purchasing their first home from 22nd November 2017.
This along with Help to Buy ISA’s is helping first time buyers get on the property ladder and realise their dream of owning their first home, when it has previously felt out of reach.
Here at Burnetts, we are happy to guide house buyers, whether it be first time buyers to moving up the property ladder or looking for that investment. We have a wealth of experience dealing with all aspects of your transaction so please get in touch with Kathryn Hill on: 01900 820906 or email her here