More good news on Help to Buy

Prominent amongst the property related reforms in the Budget was the announcement of additional Stamp Duty Land Tax (SDLT) relief for first time buyers of shared ownership properties up to a maximum of £500k in England and Northern Ireland.

For properties over £500k, no exemption is available and you’ll have to pay SDLT at the standard rates.

The new SDLT relief is backdated for properties purchased since 22 November 2017 (the last budget) provided the value of the shared ownership property was less than £500k. You can claim a rebate of SDLT by writing to HMRC.

All first time buyers on an equal footing

Prior to the autumn budget, first time buyers of shared ownership properties had to pay tax at the standard rates even though relief was available to other first time buyers. It puts all first time buyers on an equal footing now and as relief is available whether or not you are buying a shared ownership property.

• Up to £300k purchase price – 0% SDLT
• Between £300k and £500k – 5% on that share of the purchase price only.

Also, the Government announced that there will be a replacement of the current Help to Buy scheme when it runs out in March 2021.

Available to first time buyers only, the scheme will start in April 2021 and is set to last for two years. It will involve price caps based on regional areas. Each region will have a price cap based on forecasted prices and London will have a cap of £600k.

No plans to continue the scheme beyond March 2023 have been announced.

Would you like to know more? Please do not hesitate to contact Carol Blakey, Executive Partner and Head of Department on 01273 716611 or email carol.blakey@coolebevisllp.com.