This week, Richard Spector, Managing Partner at ELS Legal, looks at the success of the recent Stamp Duty cut.
Almost 70,000 first-time buyers have benefited from the Government’s recent Stamp Duty cut, according to official figures.
Stamp Duty Land Tax (SDLT) was partially abolished for first-time buyers in November last year. It reduced the amount of tax a buyer would pay on a property to zero providing the purchase value was less than £300,000.
Reports estimate that the cut will help around 95 per cent of new homeowners, while the average saving will be in the region of £1,700. The maximum saving is £5,000.
The Government suggested that the policy will help over 1 million people get onto the housing ladder.
Financial Secretary to the Treasury, Mel Stride, said: “I’m proud that the cut to stamp duty for first-time buyers is helping to realise the dream of home ownership for a new generation, alongside building more homes in the right areas, and generous schemes such as the Lifetime ISA and Help to Buy.”
The report also shows that from 22 November 2017 to 31 March 2018, the total amount of SDLT relieved was estimated at £159 million; half of which (49 per cent) was seen in London and the South East.
Stamp Duty relief: how it works
|Portion of consideration||Current standard rates||Rate for first-time buyers|
|Up to £125,000||0%||0%|
|Over £125,000 and up to £250,000||2%||0%|
|Over £250,000 and up to £300,000||5%||0%|
|Over £300,000 and up to £500,000||5%||5%|
About Richard Spector: Managing Partner Richard specialises in property transactions and commercial litigation. Richard has acted in a number of high-profile cases and was heavily involved in the litigation that arose from the collapse of Lehman Brothers. Richard has been involved in a number of cross-border litigation cases and recently acted successfully for the Claimants in Harlequin Property (SVG) Ltd & Anr v Wilkins Kennedy, listed in the Lawyer’s top 20 cases of 2016.
Latest posts by Richard Spector (see all)
- New figures reveal stamp duty success for first-time buyers – June 13, 2018
- Richard Spector: “MPs victim to ‘first-of-its-kind’ Companies House fraud” – March 26, 2018
- Richard Spector: “Record monthly surge in property prices this month” – March 20, 2018