In the autumn budget, Rachel Reeves looked to address a £22bn deficit in the economy and proposed an additional £70bn in additional public spending, paid for in part by a budget which raised taxes by a further £40bn.
Included in the budget were a number of changes in taxes associated with property purchases and sales, the key points of which are summarised below.
Budget Headlines for Property
- Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%
- Point at which house buyers start paying stamp duty on a main home to drop from £250,000 to £125,000 in April, reversing a previous tax cut
- Threshold at which first-time buyers pay the tax will also drop back, from £425,000 to £300,000
Purchasing your first home is one of the most exciting and daunting experiences people go through and here at The Purple Property Shop there is little we like more than handing over the keys to first time buyers and seeing their broad smiles and excited faces.
While the budget headlines show that the tax-exempt threshold for first time buyers is reducing, we find that the vast majority of first time buyers in Bolton and Bury purchase a property for below £300,000 in value.
Therefore if your dream home budget is £300,000 or less you can still enjoy your first purchase completely tax free.
Should you be lucky enough to be buying your first home that costs more than £300,000 then remember you only pay Stamp Duty Land Tax (5%) on the difference between the purchase price and £300,000. You still get the £300,000 tax free allowance.
What’s more these changes don’t come into effect until April of next year, so if you are looking to purchase a first home costing in excess of £300,000 we strongly recommend that you start your shopping now to save up to £6,250 in tax.
GOING FORWARD
If you would like any information about buying your first home then please feel free to phone your local Bolton estate agents, our office on 01204 598979. Our Branch Manager, Kelly and our Sales Manager Leon are waiting to take your call. You can also find out more information on how we can help you sell your home here.
