Stamp Duty Land Tax Changes – Budget Speech 2017

stamp duty

During his budget speech on Wednesday, 22 November 2017, the Chancellor, Philip Hammond, unexpectedly announced a Stamp Duty Land Tax saving for first-time buyers which would take immediate effect.

The concession benefits first-time buyers purchasing properties up to £500,000 in value. The effect of the concession is that no Stamp Duty Land Tax is payable on properties up to £300,000 while a rate of 5% is payable on the portion from £300,001-£500,000.

Buyers are eligible for this concession if they, and anyone else they purchase the property with, are first-time buyers and they complete their purchase on or after 22 November 2017.

If a first-time buyer purchaser purchases a property for more than £500,000, the normal rules on Stamp Duty Land Tax will apply.

As an example, Pete, who is a first-time buyer, purchases a house in Canterbury for £250,000. If he completed this purchase prior to 22 November, he would pay Stamp Duty Land Tax of £2500. If, on the other hand, he completes the purchase on or after 22 November there would be no Stamp Duty Land Tax payable and he would make a saving of £2500.

Lucy is also a first-time buyer who wishes to purchase a flat in London for £400,000. If she completed her purchase prior to 22 November she would pay Stamp Duty Land Tax of £10,000. If, on the other hand, she completes her purchase on or after 22 November 2017 she would pay Stamp Duty Land Tax of £5000, making a saving of £5000.

Gardner Croft has a team of experienced property lawyers and if you are a first-time buyer who thinks you might be eligible to benefit from this tax change, we’re very happy to advise.