In a move which will come as a pleasant surprise to first time buyers of shared ownership homes, the Chancellor Philip Hammond announced that stamp duty on shared ownership homes which cost up to £500,000 is to be abolished from 29 October 2018.
The abolition is also to be applied retrospectively to shared ownership homes which were purchased from 22 November 2017 (the date of the Chancellor’s last Budget).
The changes apply to the purchase of homes in England and Northern Ireland.
Up until this announcement, first time buyers still had to pay stamp duty on the purchase of a shared ownership home.
Now where stamp duty was paid a refund can be claimed from HM Revenue & Customs. It would be advisable to speak with the firm of solicitors who dealt with the purchase of the shared ownership home as to the steps to be taken to claim a refund.
Going forward if a shared ownership home is bought for more than £500,000 than the normal stamp duty rules will apply. This is something to be discussed with a solicitor during the conveyancing process.
It was also announced that HM Revenue & Customs propose a 1% Stamp Duty Land Tax surcharge for non-residents who wish to buy residential property in England and Northern Ireland.
A consultation will be published in January 2019.
Author: Anthony Barron, Tax Manager, Plus Accounting
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