Budget 2010: Stamp duty threshold raised to £250,000 for first time buyers

Squish_21

sherbie28 wrote: »

My sister and her husband bought their house only a month ago (first time buyers) and had to pay stamp duty, is there any way they could claim back. It seems really unfair that they have just lost out.

I expect as you say they would have just lost out and there will be no backdating. Bit annoying.

Senior_Paper_Monitor

Latest updates indicate - immediate reduction up to £250,000 and the million plus increase is delayed until 2011

brummiebabe

I'd like to know too - we're not first time buyers, but have exchanged and complete on 29th (Monday) - will it be applicable to all buyers under £250,000?

iahobson

Hi,

I exchanged contract on a property on Monday and due to complete in 2-3 weeks. I have not yet paid stamp duty. Where do I stand? My solicitor seems to think that I will still have to pay the 1% despite today's budget announcement.

Thanks,

Ian

beecher2

brummiebabe wrote: »

I'd like to know too - we're not first time buyers, but have exchanged and complete on 29th (Monday) - will it be applicable to all buyers under £250,000?

No, just FTB.

brummiebabe

But how can they possibly police it being just for FTB?

nickharris76

Wife's a solicitor and just sent me this (we've just had an offer accepted on a house):

Here we go … a Q&A section from the HMRC website … looks as though it's first time buyers only … don't think we'll qualify I'm afraid … typical!!

Q1. What is a first time buyer?
A. A person who has not acquired a freehold or leasehold interest in residential property in the UK (except a lease with less than 21 years to run) or an equivalent interest anywhere in the world.
Q2. When is the relief available?
A. The relief is available for transactions with an effective date on or after 25th March 2010 but before 25th March 2012.
Q3. How do I claim the relief?
A. The relief must be claimed on a land transaction return by entering relief code 28 at box 9.
Q4. I want to buy a house with my partner but one of us has previously owned a residential property. Can we claim the relief?
A. No. All of the buyers, when there are more than one, must be a first time buyer.
Q5. I previously bought a house jointly with my spouse/partner. The partnership has broken up so can I be treated as a first time buyer?
A. No. Where the individual has previously acquired an interest in a residential property as a joint tenant or a tenant in common the individual is not a first time buyer.
Q6. Is the relief available on transfers of interests in a home between partners?
A. Such a transfer normally requires a transfer from the existing owner to him/herself and the partner. Even if the partner is a First-time buyer the existing owner is not. So the relief is not available.
Q7. Can I get relief if I have previously owned an inherited property?
A. No. In this case a person will previously have acquired a major interest in a residential property.
Q8. Can I claim the relief if I’m buying on behalf of my parents?
A. No. Relief is not available unless the first time buyer(s) are buying, for themselves, a property that they intend to use as their only or main residence.
Q9. Is there an age limit on claiming the relief?
A. No. First time buyers can be of any age.
Q10. Is there a price limit on claiming the relief?
A. Yes, the sum for the whole of the purchase must not exceed £250,000.
Q11. Can the relief be claimed on shared ownership transactions?
A. The relief can be available but only if a market value election is made. The relief is not available if taxed as a lease. Normal shared ownership rules apply on staircasing. 7
Q12. How does the relief apply to alternative finance arrangements?
A. Special rules apply to put this form of finance on a level playing field. Under these schemes relief for first time buyers is available for the first purchase by the financial institution, where the person(s) entering into the arrangements meet(s) the qualifying conditions for relief.
Q13. Can I claim the relief retrospectively?
A. No. Transactions with an effective date before 25th March 2010 do not qualify.

spitfire86

I'm a first time buyer and am using the homebuy direct scheme (shared equity, not shared property), I've exchanged but my flat won't be built until September... Anybody know how it affects me? I can't find any info anywhere about if you've exchanged. Would be a great help if I could pay for my carpets instead!

James

nickharris76

Here's a link to the HMRC notes and Q&A i posted above:

http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf

Other HMRC budget info can be found here:

http://www.hmrc.gov.uk/budget2010/sdlt.htm

Cannon_Fodder

http://www.hmrc.gov.uk/budget2010/sdlt.htm

http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf