After much speculation in the press that there would be a complete inheritance tax overhaul, Rishi Sunak announced in the budget this afternoon that no changes to inheritance tax would be made. Julie West Solicitors private client solicitor Emma West explains how current allowances work.
Cash boost for first time buyers stamp duty land tax discount
First time buyers have been given a boost in the Budget announced today with a discount on stamp duty land tax for properties with a value of up to £500,000. JWS solicitor Emma West explains...
What is stamp duty land tax (SDLT)?
SDLT is a tax you pay on completion of your purchase of a property (whether freehold, leasehold or transfer of part).
SDLT is calculated in percentage bands on the value of the property above the threshold of £125,000 for residential properties.
Standard SDLT rates:
Standard rates for those who have bought a home before or who will not qualify for first time buyer rates are as follows:
Tax on value up to £125,000 = zero
Tax on value £125,001 to £250,000 = 2%
Tax on value £250,001 to £925,000 = 5%
Tax on value £925,001 to £1.5 million = 10%
Tax on remaining amount above £1.5 million = 12%
What are the new rates for first time buyers?
You will qualify for SDLT relief if you are buying your first home, you complete your purchase on or after 22 November 2017 and the value of the property you are buying is less than £500,000.
The new rates are as follows:
Tax on value of property up to £300,000 = zero
Tax on value of property £300,001 to £500,000 = 5%
This means first time buyers that complete their purchase from today will qualify for an SDLT saving of up to £5,000.
Use the HM Revenue and Customs calculator to calculate your SDLT saving: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro