AUTUMN 2018 BUDGET –
CHANGES ANNOUNCED FOR FIRST TIME BUYERS AND STAMP DUTY LAND TAX
In the Autumn Budget for 2017, it was announced that Stamp Duty Land Tax (SDLT) would be abolished for first-time buyers for purchases up to £300,000 from 22nd November 2017. This also applied to purchases of shared ownership properties where on completion the purchaser elected to pay SDLT on the full market value of the property, instead of just on the purchased share.
The Autumn Budget for 2018 has announced that First-Time Buyer Relief will now be extended to those first-time buyers who are purchasing a shared ownership property and decide to pay SDLT in stages. This is effective from 29th October 2018.
Where the market value of the shared ownership property is £500,000 or less, first-time buyers will pay no Stamp Duty on the first share purchased where the purchase price of the first share is £300,000 or less. A 5% surcharge will be applied where the first share is between £300,001 and £500,000. SDLT will not be payable on rent payments.
First-time buyers who are purchasing shared ownership property with a market value of over £500,000 will not be eligble to claim SDLT relief.
The Budget has annouced that this change is backdated to apply to qualifying transactions which completed on or before 22nd November 2017, where those transactions would now benefit from SDLT relief.
Relief must be claimed by submitting an SDLT return, or amending the SDLT return where one has already been submitted. Those who completed their purchase before 29th October 2018 have until 28th October 2018 to amend their SDLT return and claim a refund.
This does not apply to transactions in Scotland or Wales.
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