Are you planning to buy your first house? This is a great time for you because if you are a first-time homebuyer in Wales, England, or Northern Ireland, you will not have to pay stamp duty if the property is worth £300,000 or less. You might likewise be wondering how much you can save compared to the previous policies on stamp duty tax.
What is Stamp Duty for First-Time Home Buyers?
Stamp duty land tax, also known as stamp duty, is essentially a type of tax people need to pay when buying a property or land. First-time buyers must pay the stamp duty to the HMRC (Her Majesty’s Revenue and Customs) within 30 days of finalising the sale. Failure to do so may result in penalties.
What does this have to do with savings?
The new changes that came into effect just last 22 November 2017, means first-time buyers do not need to pay stamp duty if the property they are buying is worth no more than £300,000. This is excellent news for many buyers who spend an average of £200,000+ for their first home. If you are a buying a house for the first time, you will not have to pay stamp duty, which would save you approximately £1,600+.
The new regulations are likewise applicable to properties worth £500,000 or less, which means you will only need to pay stamp duty tax on the £300,000 to £500,000 portion of the home’s selling price.
You could either pay the stamp duty yourself or have your solicitor file the return and pay it for you. Either way, you will need to submit everything on time; otherwise, you will deal with fines. If the property you are buying is below £125,000, you still need to submit the return, unless you are exempted, even if you are not required pay stamp duty tax.