This November (2017), first time buyers received the excellent news from the Chancellor that Stamp Duty Land Tax (SDLT) is no longer payable by a first time buyer who is purchasing a property of up to £300K. Furthermore, the first £300K on houses worth up to £500K is also no longer payable.
This comes as great news for 95% of first time buyers, meaning that their stamp duty will be cut. In fact, thanks to this change, 80% of people buying a home for the first time will not be liable to pay any at stamp duty all.
However, while the majority of first time buyers do not need to worry about paying stamp duty, a small percentage will still need to pay, and it is worth knowing about. So, today, we at Enact explain stamp duty to those who are taking their first steps on the property ladder.
Stamp duty is a Government Tax, which is quoted based on current stamp duty rates and the purchase price of your new home. If you are a first time buyer living in England, Wales or Northern Island, you will be liable to pay stamp duty when you purchase a residential property or piece of land which costs more than £300,000.
Whether you are purchasing outright or with a mortgage, stamp duty will still apply if the property costs more than £300K. It also applies to both properties that are leasehold and freehold.
If your first property is priced higher than £300K, your conveyancer will submit a Stamp Duty Land Tax From on your behalf. The tax must be paid within 30 days of the date of the transaction; in most cases, this is the date of the completion of the property. Once the Land Registry has received a certificate from HMRC to confirm that the stamp duty has been paid, the new ownership of the property will be registered.
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