Budget 2018 SDLT – First time buyers relief
BUDGET October 2018- STAMP DUTY LAND TAX
First time buyer relief -extension of relief to all purchasers of qualifying shared ownership property.
See my previous article on the subject here
At Budget 2017, relief from stamp duty land tax (SDLT) was introduced for first time buyers. The relief applies from 22 November 2017 to purchases of residential property for £500,000 or less, provided the purchaser intends to occupy the property as their only or main residence.
From 29 October 2018 the relief was extended to include first time buyers purchasing through approved shared ownership schemes who do not elect to pay SDLT on the market value of the property but instead pay SDLT in stages. This extension will apply retrospectively from 22 November 2017 onwards.
Purchasers of shared ownership property who elect to pay SDLT on the market value of the property have been eligible for the relief since its introduction.
First time buyers purchasing their first home for £300,000 or less will pay no SDLT. Where the purchase price is over £300,000 but does not exceed £500,000 they will pay 5% on the amount above £300,000.
A calculator is available on HMRC’s website which calculates the SDLT due for first time buyers who are eligible to claim the relief:
As the relief will apply retrospectively from 22 November 2017, meaning that a refund of tax will be payable for those who have paid SDLT after the 22 November 2017 in circumstances which now qualify for First Time Buyers’ Relief.
If you would like to discuss further, please contact Shakeel Butt. firstname.lastname@example.org or 0208 545 7624