Published on: 27 Nov 2018
Stamp duty, the tax you pay when buying a property above £125,000 (in England and Wales), was scrapped for most first-time buyers in November 2017.
Since then, the government have reported over 180,500 buyers have received stamp duty tax relief, saving an estimated £426 million between them.
In last month’s budget, this stamp duty relief was extended to first-time buyers who used shared ownership schemes. And, good news if you purchased your first property earlier this year, the relief is also being applied retroactively to purchases made since 22 November 2017.
What does this mean for me?
It depends on how much your property costs:
If your property costs less than £300,000, you do not need to pay any stamp duty.
If your property costs between £300,000 and £500,000, you will pay 5% stamp duty for the amount over £300,000.
With the new rules in mind, that means you may be able to claim the stamp duty tax relief depending on when and how you purchased your property.
You may be able to get a reduction in your stamp duty if you purchased the property from 22 November 2017 and meet the following criteria:
You and however you are buying the property with have never purchased a property anywhere in the world (this includes inherited property).
You are buying the property in England or Wales.
You are buying the property as your main residence.
The cost of the property is less than £500,000.
How do I reclaim?
As the tax relief was announced as part of the 2018 budget, it will be applied to purchases going forward. However, if you purchased your property after 22 November 2017, you will need to make a claim.
You will need to write to the Stamp Duty Land Tax Office to begin the claim. Visit Gov.uk for further information and claim forms.
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