Tax Cut – Great news for First Time Buyers

Today’s budget brought great news for first time buyers:-  a first time buyer of a property up to a value of £500,000 will not pay any Stamp Duty Land Tax (SDLT) on the first £300,000 of value. They will only pay SDLT on the balance £200,000.00 up to the £500,000.00 mark.  This change has immediate effect.

“First Time Buyer” is defined as someone who has never owned an interest in a property anywhere in the world; if a couple are buying together, neither must have owned an interest in a property.  This does not apply to additional or second properties. And they must be buying their only or main home.

The HM Treasury briefing document published today states that this is to take account of the fact that first time buyers have more cash constraints than other buyers.

If you are in the process of buying a house at the moment, make sure you check this with  your lawyer and you could save a lot of money.