First Time Buyers Stamp Duty: All Important Questions Answered

Two men handshakingUnderstandably, most people have been having some questions on what the reduction on the stamp duty means, and whether it is of help to them in any way. This article expounds on questions and answers surrounding this topic.

In a bid to use and take advantage of the reduction in stamp duty for the first-time buyers, you first need to understand what it is. With the purchase and selling of properties and the jargons involved in its taxation and fees, you need a professional who can hold your hand.

What are the qualifications?

For you to qualify to be a first-time purchaser, you should not have any records of ownership for any residential property whether abroad or in the UK. These properties also include any interests on leaseholds as well as freehold property. Additionally, the property you are purchasing should be your main or only property. That means, even if you are a first-time buyer, you cannot get the relief on a buy to sell or lease the property.

What does the change mean?

A first-time buyer should no longer pay this duty on the purchase of property whose worth is £300,000. If you are buying for the first time and your property exceeds this amount, you will pay 15% stamp duty on the excess amount.

If you inherited a home, do you still qualify?

The idea behind this duty is not based on purchasing but rather ownership. That means, if you inherited a house, you own it now, and thus you are not a first-time purchaser. That means, it is possible not to qualify, even though you have never bought a property.

Money matters and property purchase can make the difference between a comfortable financial life, or ever ending debt and poverty. As such, use a professional where taxes, costs, rates and other property related transactions are related. As such, you can take advantage of the available resources without risking penalties and property loss.