At present First Time Buyers, do not pay Stamp Duty Land Tax (SDLT) on the first £500,000 on any property bought as part of the Temporary Relief provisions. However, from 1st April 2021 the SDLT provisions return to what they were before July 8th 2020. First time buyers will then have to pay SDLT on the amount by which the property exceeds £300,000 and they will have to pay at 5% in the pound. In addition, First Time buyer’s relief only applies to properties worth up to £500,000 whereas at the present time, Temporary Relief applies to properties bought at any value.
So FTB’s using this scheme will not benefit from Temporary Relief since the HTB loans can only start from the 1st April 2021. This will not matter in most areas of England including the East Midlands where there is an price cap on properties bought which is below £300,000. However, it could affect First Time buyers where the cap in areas is over £300,000. There is a further issue in London where this cap is £600,000, since there is no FTB Relief for properties over £500,000.
This guidance has been produced by Campions Solicitors of Mansfield Road, Nottingham and Brunel Park Way, Pride Park, Derby. Please send any questions to firstname.lastname@example.org