New Stamp Duty Changes - Autumn Budget 2017
The Chancellor of the Exchequer, Phillip Hammond, made a major announcement today in the Autumn Budget 2017:
Stamp duty would be abolished for first-time buyers, for homes worth up to £300,000.
In the property world, this is big news. It comes into effect today.
New Stamp Duty Rates: The Facts and Figures
According to gov.co.uk, 95% of first-time buyers who pay stamp duty will benefit. Additionally, first-time buyers of properties worth £300,000 to £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that.
It means that young people should save an average of £1,660 on their first property. In terms of what you pay back over a mortgage long-term, this short-term saving is massive.
Take a look at the handy table below to see how much you are saving under the new scheme.
These changes mean that:
- The stamp duty bill of the average first-time buyer in London will almost halve, from £10,500 to £5,500.
- 95% of first-time buyers will benefit from the changes, including almost 80% in London.
- The government believes that over the next five years, this tax relief will help over a million first-time buyers get onto the property ladder.
There are always new arguments to be made regarding tax relief policies, but this is a great initiative for many who currently look at the housing ladder as somewhat unobtainable.
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