The Chancellor, Philip Hammond has abolished Stamp duty for first-time buyers in today’s budget.
First-time buyers purchasing a property up to £300k will no Stamp Duty. Those buying properties worth up to £500k will only pay duty on the amount above £300k.
It is a move estimated to take 80% of first-time buyers out of the Stamp Duty threshold altogether.
The changes apply from one minute past midnight tomorrow to purchases by first-time buyers in England and Wales.
Stamp Duty Rates for first time buyers will be:
- Up to £300,000 purchase price: 0% stamp duty
- £300,000.01 to £500,000: 5% (on the amount over and above £300k)
- £500,000 purchase price – NO CHANGE – you will not benefit from being a first-time buyer.
What if I’m buying with a first-time buyer?
Unfortunately, if you are buying jointly with a first-time buyer but are not a first-time buyer yourself, you will not qualify for the first-time buyer rates. You both need to be first-time buyers.
How much will this help first-time buyers in Merseyside?
The average price of a property in Merseyside is approximately £164,000. Therefore under the old scheme a property worth £164,000 would attract Stamp Duty tax of £780. While a useful amount that can be put towards conveyancing fees and other costs associated with buying a property, many first time buyers in Merseyside buy properties which are already below the current threshold for Stamp Duty (£125k) and will therefore not benefit from this move by the chancellor.
Buying your first home in Merseyside, take advantage of the Stamp Duty cut and contact us for a fixed fee conveyancing quote.