More than 180,500 first time buyers have pocketed the cash
they would have spent on Stamp Duty Land Tax (SDLT) for their new homes,
statistics published by HM Revenue and Customs
(HMRC) reveal.
The money-saving tax relief, known as First Time Buyers
Relief (FTBR), was introduced on
22 November 2017, and new figures released on the eve of
the one-year anniversary show that the estimated total
amount saved by buyers is more than £426 million.
In last month’s Budget, the relief was extended to first
time buyers purchasing through approved shared ownership
schemes who choose to pay SDLT in stages, rather
than on the market value of the property. This has been
retrospectively applied to eligible property transactions
since last November.
MP, Financial
Secretary to the Treasury, said:
These statistics show that the government was right to
offer a helping hand to first time buyers. Without this
investment, more than 180,500 new homeowners may have
struggled to get onto the property ladder. Maintaining
the status quo was not an option.
FTBR is
a SDLT relief for eligible
first time buyers. The tax relief can be used when buying a
residential property where the purchase price is no more
than £500,000 in England and Northern Ireland, as long as
the purchaser does not own any other properties and intends
to use it as their main residence.
The relief was claimed in more than 58,800 transactions
between July and September this year, an increase of 12%
compared to the previous quarter.
The quarterly SDLT statistics,
including the latest figures for FTBR were published
on 21 November. You can read the latest
statistics.
The relief applies only to purchases in England and
Northern Ireland, SDLT is devolved in
Scotland and Wales.
The amount of relief reported should not be used to infer
average house prices for first time buyers; first time
buyer purchases below £125,000 and above £500,000 are not
included in the statistics as they are below the
lower SDLT threshold (£125,000)
or ineligible for the relief (above £500,000). For
purchases up to £300,000 no SDLT is payable.
Where the purchase price is between £300,000 and
£500,000, SDLT at 5% is due on the
amount above £300,000. For example, a property purchased
for £450,000 would pay £7,500 SDLT (5% of £150,000).
This gives a saving of up to £5,000 for each first time
buyer.
