SDLT - a reminder about the good news for first time buyers!

Stamp Duty Land Tax (SDLT) is payable when you purchase property. However the Autumn Budget last year delivered some very good news for first time buyers...

On 22 November 2017 a new relief came into effect meaning that first time buyers are not liable to SDLT when purchasing a property with a purchase price of less than £300,000. This reduces the upfront costs that are needed when purchasing a property, making it easier for first time buyers to get on the property ladder.

In brief, the relief applies when:

• You are purchasing a single dwelling
• The purchase price is not more than £500,000
• You are an individual (not a company)
• You are a first time buyer who intends to occupy the dwelling as your only or main residence
• The effective date of the transaction (e legal completion) is on or after 22 November 2017
• The purchase is not linked to any other land transactions, except for land that forms part of the gardens or grounds of the dwelling, or land that subsists for the benefit of either the dwelling or its garden and grounds.

You cannot claim the relief if you have previously owned or partly owned a major interest in a residential property. You are therefore unable to claim the relief if you have inherited property, had property gifted to you, or you are jointly purchasing a property with someone who has previously owned or partly owned a major interest in a residential property.

Where the purchase price of the property you are buying is £300,000 or less, there will be no SDLT payable on the transaction. Where the purchase price of the property you are buying is between £300,001 and £500,000, SDLT at the rate of 5% will be payable for the portion of the purchase price in excess of £300,000.

If you are purchasing a property and require further information, our conveyancing team can be contacted by phone on 01603 625231 or you can email ahfarquharson@cozens-hardy.com.