Date Published 24 November 2017
You may have seen the news over the past few days about Chancellor Philip Hammond`s plan to scrap stamp duty for many first time buyers. Announced in the Autumn Budget 2017, from the 22nd November 2017, people buying a first home up to £300,000 will not have to pay stamp duty tax on their purchase.
This is great news! Those who are looking to buy their first home will be able to potentially save thousands of pounds on the purchase transaction. Here is the facts and what you need to be aware of:-
• First time buyers will pay no stamp duty on property purchases, up to the value of £300,000.
• If the property is valued up to £500,000, first time buyers would only pay the stamp duty on the difference between £300,000 and the purchase price. (Eg. Property cost £450,000. First time buyers would pay 5% stamp duty on £150,000 only.)
• If the property price is above £500,000 the normal stamp duty rates would apply, with the exemption not being valid.
• The buyer (or buyers) must have never owned a property, or a share of a property, in the UK or anywhere else in the world.
• If a couple are buying a property together, and only one of them is a first time buyer, they would not qualify for the tax exemption, and would need to pay the regular rate.
• The property must be used as the buyer`s main dwelling. (Cannot be used for buy-to-let or as a second home)
• The change will apply to England and Northern Ireland and has come into effect from 22nd November 2017.
• Wales will be included to March 2018, but will be devolved from after that point. Scotland has an independent system of land tax.
More details can be found at the official Government Budget Website - http://bit.ly/2jdAdnN
If you are looking to buy your first home in Bournemouth and would like advice on any aspect of buying a home then please contact one of the team at Fahren Estate Agents, Bournemouth. We would love to help you in your important step onto the property ladder.
Telephone: 01202 551022
or follow us on your favourite social media channel