Stamp Duty Relief Extended
Published 5 November 2018
Chancellor Philip Hammond announced in the 2017 Budget that Stamp Duty Land Tax (SDLT) for first-time buyers would be abolished for purchases up to £300,000. Following on from this, the 2018 Budget has extended this tax relief to include first-time buyers in shared ownership purchases of up to £500,000.
Encouraging the number of first-time buyers onto the property ladder continues to be a top priority for the Government. Indeed a number of schemes in recent years has brought the number of first-time buyers to an 11 year high, representing a return to ‘pre-crash’ levels.*
First-time buyers in shared ownership homes will pay zero stamp duty on the first £300,000 of any home that costs up to £500,000. This will take place with immediate effect and will be backdated to property transactions made on or after 22 November 2017.
Emma Smyth, Property Solicitor at MKB Law, comments: “Buying your first home is already a very expensive time and so the extension of the stamp duty exemption to shared ownership properties of up to £500,000 is very welcome news for first time buyers.
By their nature, first-time buyers purchasing shared-ownership homes are struggling to take that all important first step onto the housing ladder. Making shared-ownership home buyers – who are only buying a share of the property – eligible for the first time buyer stamp duty exemption, makes sense. It is also a welcome move that relief will be applied retrospectively from the previous budget.”
At MKB Law, our residential property team is highly experienced and service-driven. If you are a first-time buyer, we will guide you through each stage of the conveyancing process, ensuring all legal documentation, contracts and checks are completed correctly and promptly. We can also advise on funding arrangements related to your purchase, and relevant first-time buyer schemes such as the Help to Buy ISA.