Yahoo Finance Stamp duty changes for first-time buyers: what you need to know
As part a raft of measures to boost home-building the Chancellor has announced - as hinted - a cut in duty for those buying a home for the first time.
Overview
Where first-time buyers are spending £300,000 or less their entire purchase will be free of duty.
Where properties are more expensive, the first £300,000 will be free of duty provided the property's total price is £500,000 or less.
How much could be saved?
The maximum saving would be £5,000, which is the duty arising on on a £300,000 purchase.
"This is a positive policy announcement and shows Mr Hammond has been listening to the concerns of younger buyers," said Caroline Le Jeune, tax partner at accountant Blick Rothenberg. "It represents a powerful offering for that group."
The duty cut in detail
Q: What happens if I'm completing my transaction today?
A: You should benefit - as the exemption applies from today.
Q: What happens if I completed yesterday - or recently - and have not yet filed my stamp duty return?
A: Unfortunately you will lose out. The tax cut applies to the date of completion - and that's today, November 22.
Q: What happens if my partner isn't a first-time buyer but I am?
A: No luck. The document detail states that where purchases are in joint names, each party must be a first-time buyer.
Q: Is that the same if I am buying with my parents?
A: Yes. If your parents are helping you simply by giving you money, you will benefit from the exemption. If they are purchasing part of the property alongside you, the benefit won't apply.
Q: What happens if my first-time purchase costs more than £500,000?
A: This scenario will apply to only 5pc of buyers, according to statistics quoted by Philip Hammond. But they will get zero benefit. They will have to pay the full £15,000 duty as would anyone else.
