First time buyers will be pleased to note that SDLT relief has been introduced with immediate effect.
From 22nd November 2017, first time buyers will be subject to the following SDLT bands:
|£300,001 – £500,000||5%|
The new rates apply to all residential property transactions completing on or after 22nd November 2017.
This means that:
- First time buyers will be completely exempt from SDLT where the purchase price is £300,000 or less;
- For purchases up to £500,000, SDLT will be payable on the portion of the purchase price which is above £300,000 and up to the £500,000 threshold;
- Where a first time buyer is purchasing a property in excess of £500,000, they will not be granted relief.
It is important to note that as at the time of writing, relief will not be granted to first time buyers who do not intend to occupy the property as their main residence. This means that buy-to-let investments will be subject to the following standard rates*:
|£125,001 – £250,000||2%|
|£250,001 – £925,000||5%|
|£925,001 – £1.5m||10%|
*Source: HMRC. This article will be updated as and when more information has been released by HMRC.