There has been a decision made to abolish stamp duty for first-time buyers, applicable to all properties with a value up to 300,000. It has been estimated that at least 80% of first-time buyers will now avoid paying stamp duty altogether. This is great news and so if you are searching for a new build home, now is the time to buy!
The tax was introduced in 1694 in order to raise money for the war. It has since been blamed for the prevention of younger generations getting on the property market and older generations downsizing. Here are some helpful FAQ’s to help you get to know more about stamp duty and how much you will have to pay.
What is stamp duty?
Stamp duty is a land tax you must pay when purchasing a property or land.
I’m a first-time buyer, will I have to pay stamp duty?
Well, this depends on the cost of your property. The chancellor has announced that first-time buyers will pay zero stamp duty on the first 300,000 of a property, saving you up to £5,000!
Up to £300,000: 0% stamp duty
£300,000.01 to £500,000: 5% stamp duty
I’m a second-time buyer, will I have to pay stamp duty?
Again, this depends on the cost of your property.
£0 – £125,000: 0% stamp duty
£125,001 – £250,000: 2% stamp duty
£250,001 – £925,000: 5% stamp duty
When do I have to pay stamp duty?
You will have to pay stamp duty within 30 days of taking possession of your property. It will usually be a task that is completed with or by your solicitor, so don’t worry if you feel that you need guidance.
It is fantastic news for first-time buyers and hopefully, we will see a rise in the number of people getting onto the property ladder. The changes apply now but only up until 31st March 2018 before transitioning into the Land Transaction Tax from 1st April, watch this space for an update!