First Time Buyers Stamp Duty Calculator 2017 | UK SDLT Change
On the 22nd November 2017, the UK Government announced changes to the Stamp Duty Rates for First Time Buyers in England, Wales and Northern Ireland as part of their autumn budget. A first-time buyer purchasing a property for under £300,000, will be exempt from SDLT.
First Time Buyers Stamp Duty Calculator for 2017
You will be pleased to know that since the UK Governmet announced the first time buyer stamp duty changes on 22nd November 2017, we have been busy upating our stamp duty calculator to ask an additional question to determine if somebody purchasing a property is in fact a first time buyer. Simply enter your total property purchase price in to the SDLT calculator and then you can quickly and easily so how much stamp duty you have to pay for buying your first house or flat.
0% Stamp Duty up to £300,000 and Reduced First Time Buyer Stamp Duty up to £500,000
A rate of 0% was set for any first time buyer purchase under the £300,000 mark and a reduced rate of 5% on the remaining purchase amount between £300,001 - £500,000. The move by the UK Government is estimated to help 80% of first time buyers avoid paying any stamp duty and will help other first time buyers in more expensive areas such as London, by reducing their SDLT liablity. It is expected most first time buyers could save up to £5,000 in moving costs and this will help them into the property market an on to the UK property ladder.
So what are the New 2017 Stamp Duty Rates for First Time Buyers?
The following rates will apply to first time buyer property purchases from the 22nd November 2017:
- Up to £300,000 = 0%
- £300,001 - £500,000 = 5% (on the remaining part of the purchase price)
As an example
First Time Buyers Purchasing a House for £299,000
This would result in a SDLT liability of £0. As the property is under £300,000, there will be no stamp duty to pay on the purchase.
First Time Buyers Purchasing a Flat for £489,000 in London
This would result in a Stamp Duty Tax bill of £9,450 calculated as follows:
TOTAL PURCHASE PRICE = £489,000
First £300,000 @ 0% = £0
Remaining Amount Between £300,001 - £500,000 @5% = £9,450 (5% SDLT calculated on the remaining balance of £189,000)
TOTAL SDLT DUE = £9,450
What about First Time Buyers purchasing a Property for over £500,000?
If you are first time buyers purchasing your first property for over £500,000, then I'm afraid you will NOT be able to take advantage of the lower first time buyer Stamp Duty rules. You will be subject to the regular SDLT rates on your full purchase price.
Who is classed as a First Time Buyer to take advantage of the New 2017 SDLT Rates?
In order to take advantage of the new first-time buyer stamp duty changes, anybody involved in purchasing the property will have to declare to their conveyancing solicitor that they have never owned a property in the UK or abroad. When completing your purchase, your solicitor will submit your Stamp Duty return to HMRC on your behalf and will use a special first time buyer code when doing so.
The Stamp Duty relief is available on any first time buyer property purchase up to £500,000.
What about Joint Purchases? What if someone else involved in the Purchase is NOT classed as a First Time Buyer?
Anybody purchasing the property or involved in the purchase, has to be classifed as a first time buyer. Anybody that has held a mortgage, owned a property either in the UK, Europe or anywhere else in the world, will NOT qualify as a first time buyer and as a result, the purchase will attract the standard stamp duty rates on the full purchase price OR if one of the people purchasing already owns an exisiting property, then the higher stamp duty rates would then apply to the full purchase price.
Do the New First Time Buyer SDLT Rates apply to anyone buying in Scotland?
The new SDLT rates are NOT applicable to first time buyers purchasing in Scotland. SDLT rates in Scotland are set by the Scottish Governement and are known as LBTT. (Land Buildings Transaction Tax)
In Wales the first time buyer Stamp Duty Relief will be available until April 2018. After this time stamp duty levels will be determined by the Welsh Governement when a new Land Transaction Tax (LTT) will replace the existing stamp duty system currently operated for Wales, England & Northern Ireland.
When do you have to pay the Stamp Duty to HMRC as a First Time Buyer?
When you have completed the purchase of your first home, you must pay your Stamp Duty Tax to HMRC within 30 days. If you fail to pay within 30 days, HMRC may charge penalties and interest on late payments. If you have instructed a conveyancing solicitor to handle your pruchase for you, they will submit this to HMRC on your behalf along with the money to pay for the SDLT.
It is usual for your solicitor to ask for your SDLT money to be paid into their client account, ready for them to then make payment on completion of your property purchase to the HMRC.
HMRC are currently looking at the SDLT payment process in general and are proposing to cut the payment time from 30 days to 14 days. These changes could come into affect for the 2017 / 2018 tax year.
First Time Buyers Solicitors Fees - Compare and Save
If you are a first time buyer that has found a property, then you need to find a conveyancing solicitor that can help guide you through your purchase to completion and to becoming a homeowner. Our relationship with The Conveyancing Network, means you can take advantage of their expert first time buyer solicitors panel and save yourself time and money when comparing first time buyer solicitors fees. Simply enter a few details about your purchase and within 3 steps your compare up to 5 quotes from qualified solicitors and licensed covneyancers, for FREE and instantly online.