The government has extended stamp duty relief for first-time buyers purchasing shared ownership homes valued at up to £500,000.
In England and Northern Ireland, first-time buyers purchasing shared ownership properties costing up to £500,000 are now subject to the stamp duty relief available to other first time buyers. Previously, they still had to pay the tax even though all other first-time buyers were exempt on the first £300,000 on properties valued at up to £500,000 – a change which came into effect from the previous Budget last November.
Properties valued up to £300,000 are expempt from SDLT, 5% is then payable on any value above £300,000 up to and including£500,000.
Delivering his speech to MPs yesterday, Mr Hammond said 121,500 buyers have benefitted from the first time buyer exemption so far with the number of first-time buyers at an 11-year high.
He added: “Today I’m extending this relief to all first-time buyers of shared ownership properties valued up to £500,000 and I will make this relief retrospective so that any first-time buyer who has made such a purchase since the last Budget will benefit.”
The policy will apply to properties worth up to £500,000 with immediate effect and will include homes bought through shared ownership since last year’s Autumn Budget (22 November 2017).
If you have already purchased a shared ownership property and are entitled to a refund as set out above this can be claimed online at:
If you buy a property which is part of the shared ownership scheme costing more than £500,000, you will not benefit from any change and will be buying under the standard system, which applies to non first-time buyers. As this is an extension of the stamp duty exemption rules set out in the previous Budget, the same rules apply. So, if you’re a first-time buyer jointly purchasing a home with a non first-time buyer, you won’t qualify for the first-time buyer rates. You both need to be first-time buyers.