Stamp Duty Land Tax
A new relief is to be introduced for first-time-buyers within England, Wales and Northern Ireland that will raise the price at which a property becomes liable for stamp duty land tax (SDLT) to £300,000.
Those claiming the relief will pay no SDLT on the first £300,000 of the consideration and 5% on any remainder. No relief will be available for first-time buyers paying more than £500,000.
The new relief will apply to transactions with an effective date on or after 22 November 2017. However, from 1 April 2018, Wales will assume responsibility for setting its own land transaction tax rates.
The rules do not apply in Scotland.
SDLT Higher Rate
Minor changes to the operation of the SDLT are
introduced to grant relief from tax due under the
higher rates and will have effect for transactions on or after 22 November 2017.
These are announced in the Budget as follows:
- a court order issued on a divorce or dissolution of a civil partnership prevents someone from disposing of their interest in a main residence
- a person buys property from their spouse or
- a person buys a property in a child’s name or on a child’s behalf, where they are doing so in their capacity as the deputy of that child
- a purchaser adds to their interest in their main residence.
A new rule to prevent abuse of relief for replacement of a purchaser’s only or main residence is introduced, by requiring the purchaser to dispose of the whole of their interest in their former main residence and to do so, to someone who is not their spouse.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.
Data reproduced with the kind permission of PracticePro