For many homebuyers, stamp duty tax, or as it is officially known, Stamp Duty Land Tax (SDLT) is the biggest add-on cost in a property transaction.
First-time buyers were among the biggest winners in the autumn budget that Chancellor Philip Hammond introduced in November 2017 in relation to the stamp duty cut.
This is a tax that applies to both Leasehold and Freehold properties regardless of whether you are purchasing with a mortgage or outright.
Individuals purchasing a residential property for the first time within England, Wales and Northern Ireland.
Depending on the value of the property, you will either pay a reduced rate or no stamp duty. This will vary on the following; –
You can use HMRC’s calculator to work out how much SDLT you will have to pay, which must be paid within 14 days of your transaction completing.
In practice, your Solicitor will likely take this payment from you and pay HMRC on your behalf.
Figures published by HMRC this year have revealed that there has been a 3% increase in the first-time buyer relief claims from the previous quarter, with 78% of transactions paying no Stamp Duty Land Tax (SDLT) at all.
The First Time Buyer Scheme is part of the Government’s commitment to support first-time buyers and home ownership. Therefore, by introducing this relief first time buyers will be able to reduce their upfront costs, and this enables them to purchase their first home.
Whilst we have given you an insight into stamp duty for first time buyers, if you are looking for professional and experienced solicitors in conveyancing, please contact Aurora Dedja-Lika at the Commercial Property Team at The Sethi Partnership Solicitors.
T: +44 (0)20 8866 6464
The Sethi Partnership Solicitors I The Barn House I 38 Meadow Way I Eastcote I Ruislip I Middlesex I HA4 8TB
“This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.”