Buying property
First time home-buyers got a surprise present from the Chancellor in his first Autumn Budget. From 22 November 2017, there is an exemption from Stamp Duty Land Tax (SDLT) on the first £300,000 when buying a home, where the total price of the property is not more than £500,000. 5% is payable on purchases between £300,000 and £500,000.
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Many parents help when it comes to buying a first property for children. To take advantage of the SDLT exemption, parents need to be excluded from part ownership of the property (assuming they have bought a home before), or the exemption will be lost.
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Scotland and Wales
With devolved taxes, buying a property in Scotland and Wales can bring different tax consequences. Land and Buildings Transaction Tax (LBTT) applies to Scotland. The Scottish Draft Budget 2018/19 provides for LBTT relief for first-time buyers of properties up to £175,000, subject to a government consultation before the relief launches in 2018/19.
Welsh first-time buyers benefit from the Budget SDLT relief until 31 March 2018. Land Transaction Tax (LTT) replaces SDLT in Wales from 1 April 2018. The starting rate for LTT will be £180,000, benefiting not just first-time buyers but other homebuyers in Wales. A higher rate, of 3% over standard stamp duty land tax rates for additional residential properties, also applies to purchases in Scotland and Wales.