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It has been revealed that Philip Hammond’s decision to abolish stamp duty land tax (SDLT) for most first-time buyers on all properties worth up to £300,000 saved homeowners £284 million in the first half of 2018. This works out at an average saving of £2,337 per homeowner.

The chancellor scrapped SDLT in the 2017 Autumn Budget for most people taking their first step onto the property ladder in England, Northern Ireland and for a limited period, in Wales.

Speaking at the time, Hammond expected the move to cut SDLT for 95% of first-time buyers and completely abolish it for 80% of them.

SDLT was axed on the first £300,000 of all purchase prices up to a value of £500,000, with a 5% rate chargeable on the portion between £300,000 and £500,000.

Those who bought their first home in Wales could have benefited from the move between the 22 November 2017 and 1 April 2018, at which point the devolved land transaction tax replaced SDLT.

Figures have shown that more than 121,500 first-time buyers have been able to get on the property ladder in the six months between the 1 January 2018 and the 30 June 2018. The data also estimates that the government’s policy will help more than one million people get onto the housing ladder in the next five years.

Mel Stride, financial secretary to the Treasury, said:

“Our cut to stamp duty for first-time buyers is helping to make the dream of home ownership a reality for a new generation – exactly as we intended. In addition, we’re building more homes in the right areas and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”

If you would like to talk to us about our personal tax planning services, give us a call on 01344 776225 or contact us online.

 

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