New First Time Buyers Relief for buying a Shared Ownership Property
On Monday 29th October 2018 the Chancellor announced in the Autumn Budget that there would be First Time Buyers Relief for First Time Buyers purchasing a Shared Ownership Property up to the value of £500,000. A Shared Ownership Property is where you purchase a percentage of the value, for example 50%, then the remaining 50% is owned by a Landlord, normally a Housing Association. If you purchase 50% of the value of the property, you will then pay rent on the remaining 50% of the property. This way of buying a property lowers the mortgage you require. It is not the same as the Help to Buy Scheme.
These new rules mean that on a Property valued at up to £500,000, First Time Buyers do not have to pay any Stamp Duty Land Tax on the first £300,000 of the Property and then they pay 5% on the value of the amount from £300,000 to £500,000. The relief allows First Time Buyers buying a Shared Ownership Property to benefit from the same relief as First Time Buyers purchasing a non Shared Ownership Property.
The relief will be welcome news to First Time Buyers of Shared Ownership Properties especially those in London where Property prices are higher. It will also be good news for anyone who was a First Time Buyer and purchased Shared Ownership Property since 22nd November 2017 as the Chancellor announced the relief would be back dated to the announcement of the First Time Buyers relief last year. Anyone in this situation will be able to claim a refund from Her Majesty’s Revenue and Customs for some or all of the Stamp Duty Land Tax they paid when they purchased the Property. Claims need to be made directly to Her Majesty’s Revenue and Customs.
If you would like a free no obligation quotation for a purchasing a Shared Ownership Property or regarding the new Stamp Duty Land Tax benefits then please do not hesitate to contact us.
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