Changes to the Stamp Duty
According to new Budget-2017, the first time buyers will not pay stamp duty when buying the property up to £300 000 starting from 22 November 2017. For properties above £500 000, no stamp duty will be paid on the first £300 000. This change will take place in England, Northern Ireland and Wales but it will not apply in Scotland as it has its own system of land tax. New Stamp Duty would affect 95% of first-time buyers with 80% not paying any stamp duty. The policy will cost the Treasury £3.2bn over the next five years and it is expected that house prices will rise by 0.3% within a year because of this change. A target of 300 000 new homes by mid 2020 with £44 bn government funding will also encourage people purchasing their first homes. In addition, the government will impose 100% council tax upon empty properties in the UK. Sometimes the discount may apply dependong on the property location.
Posted on Nov 22, 2017.