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    • Westlr
    • By Westlr 2nd Oct 17, 7:15 PM
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    Westlr
    First time buyer - changes to stamp duty?
    • #1
    • 2nd Oct 17, 7:15 PM
    First time buyer - changes to stamp duty? 2nd Oct 17 at 7:15 PM
    Hello
    I read in the paper over the weekend that the government were considering changes to stamp duty, including slashing or axeing it for first time buyers.
    I'm currently going through the process of buying a flat and should be exchanging contacts within the next couple of weeks. It's chain free so the completion date is flexible.
    Is it worth holding off until the autumn budget on 22 November to see if the Government make changes? Any advice gratefully received!

    Thank you.
Page 1
    • G_M
    • By G_M 2nd Oct 17, 7:17 PM
    • 42,317 Posts
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    G_M
    • #2
    • 2nd Oct 17, 7:17 PM
    • #2
    • 2nd Oct 17, 7:17 PM
    They might back-track and increase SDLT in order to raise revenue.

    Unlike Mrs T, Mrs M does do U-turns.......!
    • kinger101
    • By kinger101 2nd Oct 17, 7:19 PM
    • 3,956 Posts
    • 5,416 Thanks
    kinger101
    • #3
    • 2nd Oct 17, 7:19 PM
    • #3
    • 2nd Oct 17, 7:19 PM
    I suspect your vendor will (quite rightly) put the property back on the market if you attempt to hold things up by seven weeks to see what's in the budget.
    • juniordoc
    • By juniordoc 2nd Oct 17, 8:16 PM
    • 236 Posts
    • 202 Thanks
    juniordoc
    • #4
    • 2nd Oct 17, 8:16 PM
    • #4
    • 2nd Oct 17, 8:16 PM
    I was thinking of doing the same, we need 4 weeks between exchange and completion anyway so we can give notice on our rental so I don't consider that we'd be holding things up particularly, and with a potential saving of £4.5K for us, it's certainly worth some minor inconvenience anyway.
    • Cakeguts
    • By Cakeguts 2nd Oct 17, 8:33 PM
    • 3,280 Posts
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    Cakeguts
    • #5
    • 2nd Oct 17, 8:33 PM
    • #5
    • 2nd Oct 17, 8:33 PM
    Define first time buyers. I would expect there to be a maximum limit on price too.
    • hazyjo
    • By hazyjo 2nd Oct 17, 10:43 PM
    • 9,843 Posts
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    hazyjo
    • #6
    • 2nd Oct 17, 10:43 PM
    • #6
    • 2nd Oct 17, 10:43 PM
    I was thinking of doing the same, we need 4 weeks between exchange and completion anyway so we can give notice on our rental so I don't consider that we'd be holding things up particularly, and with a potential saving of £4.5K for us, it's certainly worth some minor inconvenience anyway.
    Originally posted by juniordoc
    You may find you're committed to pay it anyway once you've exchanged (may not be the case). So you could be waiting 7 weeks plus another 4. Unless you've only just had an offer accepted, don't expect your vendors to wait.
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation; Flybe flight
    • Lolly88
    • By Lolly88 2nd Oct 17, 11:14 PM
    • 237 Posts
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    Lolly88
    • #7
    • 2nd Oct 17, 11:14 PM
    • #7
    • 2nd Oct 17, 11:14 PM
    Even if announced in the Autumn budget wouldn't it take time to implement? If I recall correctly they also announced plans to abolish rental fees in the previous Autuam budget and this still has not happened and when they introduced higher tax for BTL landlords that didn't happen overnight either. So unless I'm missing something it's unlikely to be something that would beneficial to you at this point in the buying process
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    • csgohan4
    • By csgohan4 3rd Oct 17, 7:39 AM
    • 4,019 Posts
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    csgohan4
    • #8
    • 3rd Oct 17, 7:39 AM
    • #8
    • 3rd Oct 17, 7:39 AM
    OP you can always hope, but I wouldn't hold my breath
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Car1980
    • By Car1980 3rd Oct 17, 11:01 AM
    • 234 Posts
    • 113 Thanks
    Car1980
    • #9
    • 3rd Oct 17, 11:01 AM
    • #9
    • 3rd Oct 17, 11:01 AM
    This is in the paper every year. Hammond is the Chancellor that does naff all though, so don’t expect any changes in the Budget.
    • juniordoc
    • By juniordoc 3rd Oct 17, 1:02 PM
    • 236 Posts
    • 202 Thanks
    juniordoc
    When George Osborne reformed SDLT in the 2014 budget the change was effective immediately and those currently going through the purchase process could choose to stay on the old scale or the new.
    In 2010 when Alistair Darling exempt houses under £250k from stamp duty for first time buyers, it was effective from the day after the budget.
    In 2008 when SDLT thresholds were significantly raised, it was effective from the day after the budget.
    The number of purchases going through is at an utter nadir, it is well recognised that the economy currently favours older generations and that younger generations are struggling to buy their first homes.
    If you were a first time buyer due to complete in November, why would you NOT wait until the budget announcement?
    • m0t
    • By m0t 3rd Oct 17, 1:14 PM
    • 252 Posts
    • 137 Thanks
    m0t
    The autumn budget is for changes to be made from the 1st April, the Chancellor changed it after this year's spring budget. The point was to give notice of tax changes rather than springing them on people just before the start of the financial year.

    This means that even if the Chancellor announces something about changes to stamp duty it won't take effect until April.
    • kinger101
    • By kinger101 3rd Oct 17, 7:20 PM
    • 3,956 Posts
    • 5,416 Thanks
    kinger101
    The autumn budget is for changes to be made from the 1st April, the Chancellor changed it after this year's spring budget. The point was to give notice of tax changes rather than springing them on people just before the start of the financial year.

    This means that even if the Chancellor announces something about changes to stamp duty it won't take effect until April.
    Originally posted by m0t
    Not really. For one, there are several examples (some already cited) of stamp duty changes having immediate effect. Secondly, tax years start on 6th April, not the 1st. And finally, many of the changes occur later than April after the budget. For example, the 2017/2018 personal allowance has already been set. This budget will announce the 2018/19 level.
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