What exactly is Stamp Duty Relief for First Time Buyers

We've all heard about Stamp Duty… you've probably come across it yourself if you've bought a property, but what is it all about? Why exactly do we need to understand it? What relevance does it have to working out the costs of buying a home?

In its simplest form, when you buy a house or flat it is your responsibility to report the details to HM Revenue & Customs. This is usually done through your solicitor who will advise HMRC of the circumstances of the transaction, and submit the tax due.

The thresholds are currently:

1% between £125,001 and £250,000 — 3% between 250,001 and £500,000

4% between £500,001 and £1million — 5% over £1million

However, the government has offered a temporary relief to those buying a house for the very first time. Under the new relief, tax is not payable on a purchase up to the value of £250,000, if you are a first time buyer, when otherwise it would be. This relief is due to come to an end soon, and will no longer be available if completion takes place after the 25th March 2012.

There may not be a better time for first time buyers to take advantage of this relief, which could be a saving of up to £2,500. To help bring this potential saving to the attention of the public we, at Wards, are doing everything we can to make sure buyers are aware that they could still benefit.

Wards are offering a discount to SBN members! We will waive our usual fee of £50 plus VAT, for dealing with the Stamp Duty requirements, on all instructions received until the end of January 2012. This offer is available to all buyers, not just first time buyers.

For further details, or for a quote call 01454 204891.