On Monday 29th October 2018 the Chancellor Phillip Hammond delivered the 2018 Budget in the House of Commons. Here we examine what this means for clients and prospective buyers.
The First Time Buyers’ Relief (an exemption from SDLT) is now extended to buyers of the first share in a qualifying shared ownership property with a market value of £500,000 or less.
Prior to the announcement, relief was available only for a shared ownership property purchase where the purchaser elected to pay the SDLT upfront on the market value of the property. This change means that purchasers who instead decide to pay the SDLT in stages will also benefit from the relief.
Relief will be applied to the first share purchased where the market value of the shared ownership property is £500,000 or less. No SDLT will be charged on the rental payments.
From what date will this be effective?
This relief will actually be backdated to 22 November 2017.
This means that for anybody who completed a purchase transaction on or after this date will be able to claim an SDLT refund.
The relief must be claimed in an SDLT return or by amendment where an SDLT return has already been filed. The amendment window for those who completed their transaction before 29 October 2018 is extended to 28 October 2019.
Filing of SDLT returns
The filing deadline for SDLT returns and the payment of SDLT will be reduced from 30 days to 14 days after the effective date of the transaction for sales completed on and after from 1 March 2019.
- The Budget also announced that the Help to Buy scheme will come to an end in 2023. It was originally due to end in April 2021, but received a two-year extension.
- £500m for the Housing Infrastructure Fund, designed to enable a further 650,000 homes to be built.
- New partnerships with housing associations in England to deliver 13,000 homes.
- Guarantees of up to £1bn for smaller house-builders.
We are now in the process of contacting all of our clients who may be affected by this change in First Time Buyer’s Relief for the grant of shared ownership leases.
If you would like any advice relating to first time buyer relief then contact our specialist New Build Conveyancing team at ORJ who are leading experts in this field on 01785 223440.