Friday, November 8, 2024

UK offers relief on stamp duty for first time home buyers

First time buyers purchasing homes of £300,000 and under now pay no stamp duty at all, and those who have bought properties of up to £500,000 will also have benefited from a stamp duty cut, according to UK Government.

 

An estimated 121,500 first-time buyers have saved a total of £284 million thanks to the government’s cut to stamp duty, according to official statistics released

 

Stamp Duty Land Tax (SDLT) is paid if you buy a property or land over a certain price in England and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.

 

According to UK government, first time home buyers are eligible for a relief, pay less or no tax if:

  • First time buyer
  • Purchase on or after 22 November 2017
  • Purchase price is £500,000 or less

 

residential SDLT
Residential property transactions in 2018

 

First time buyers don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.

 

If the price is over £500,000, you follow the rules for people who’ve bought a home before and the following slabs apply.

 

Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
Prabhu Balakrishnan
Prabhu Balakrishnan
Founder of Citizenship by Investment News. Chief Editor with over 15 years experience in PR and News publishing. He Loves writing about citizenship, residency and wealth migration. CIP Journal is a Leading publication founded in 2017 bringing latest news from CBI/RBI market.

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