Posted: 11 Jan 2018
#New Home #Affordable Home #First Time Buyer
What does the cut in stamp duty mean for Shared Ownership homes?
In the recent budget, first time buyers celebrated as Chancellor, Philip Hammond, abolished stamp duty for first homes worth up to £300,000.
A new stamp duty of 5% was also applied to property purchases between £300,000 and £500,000, in order to encourage more first timer buyers to get on the property ladder. However, although it’s a move in the right direction, critics say the move fails to address the underlying issue of low wage inflation and high house prices.
But what does the cut in stamp duty mean for buyers of Shared Ownership homes?
Well, this depends on the value of the home and the size of the share purchased. Ultimately, Shared Ownership buyers who wish to pay stamp duty on the full market value of their home at the time of purchase will benefit from the recent news if the value of the property is less than £300,000.
First time buyers looking to buy a Shared Ownership home between £300,000 and £500,000 and want to pay the full stamp duty at the time of purchase, will owe 5% duty on the amount that exceeds £300,000. For example, if a Shared Ownership home is purchased for £350,000, then buyers will need to pay 5% stamp duty on £50,000, which equals £2,500.
Full details on the impact of the new stamp duty relief on Shared Ownership can be found on the Government’s own Shared Ownership page.
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