Stamp Duty Will Be Scrapped Up To £250,000.

[BelfastVI]

BBc Link

A good boost for FTB'ers, although it will be interesting to see how they define FTB'er. I imagine they will have a way to check if you ever paid Stamp duty before. I'm sure I am going to have some fun with the folks who are currently contracted with us.

[paul65]

BBc Link

A good boost for FTB'ers, although it will be interesting to see how they define FTB'er. I imagine they will have a way to check if you ever paid Stamp duty before. I'm sure I am going to have some fun with the folks who are currently contracted with us.

I'd say the definition of a FTB is pretty obvious - whouldn't you BVI? As for the checks on whether you ever paid Stamp Duty before - surely this leaves a loophole for all those that bought at sub 125k and 175k (during the recent holiday period), so that can't be relied upon as being watertight. Wouldn't a search of the Land Registry records prove far more effective in determining FTB status instead?

[fallingbuzzard]

This benefits sellers and owners of property worth less than £250k, not buyers.

BBc Link

A good boost for FTB'ers, although it will be interesting to see how they define FTB'er. I imagine they will have a way to check if you ever paid Stamp duty before. I'm sure I am going to have some fun with the folks who are currently contracted with us.

[SPADER]

This benefits sellers and owners of property worth less than £250k, not buyers.

Care to expand on this?

[Guest crashdesk]

I'm sure this won't make much of a difference as this will be taken into consideration when the EA/Vendor is accepting an offer.

I heard a story from a friend a while back where the vendor of a house on the market for £130,000 received the offer he wanted, but when bargaining, there appeared to be worked needed done which totalled £10,000. The vendor they pulled out, and upped the price to £140,000 to account for this. That's life. I think the house is still on the market though ;-)

[HPC hopeful]

We sold our house and are now renting - we have never paid stamp duty before as our last house was below the threshold when we bought it - does that mean we can call ourselves first time buyers and therefore benefit from this?

[BelfastVI]

I'd say the definition of a FTB is pretty obvious - whouldn't you BVI? As for the checks on whether you ever paid Stamp Duty before - surely this leaves a loophole for all those that bought at sub 125k and 175k (during the recent holiday period), so that can't be relied upon as being watertight. Wouldn't a search of the Land Registry records prove far more effective in determining FTB status instead?

For the purposes of Mortgages this definition is far from obvious. If you are not 'moving house/mortgage' you are considered a FTBer for that purpose and the CML will record you in their statics as a FTB'er.

Land Registry records do not record National Insurance numbers (I believe Stamp Duty returns do). All Land Registry will show is some one of a same name and a previous address. I am not sure you can perform a search by name only, you only (I believe) perform a search by address.

Even if you purchased a house under the threshold, I think you still submit a STAMP Duty return. It just shows that the transaction is exempt from the tax. This still records your NI number.

In my view this still remains the best way of checking. I also imagine you will have to sign a declaration with a hefty fine if you are found to be 'tax evading'.

[paul65]

For the purposes of Mortgages this definition is far from obvious. If you are not 'moving house/mortgage' you are considered a FTBer for that purpose and the CML will record you in their statics as a FTB'er.

Land Registry records do not record National Insurance numbers (I believe Stamp Duty returns do). All Land Registry will show is some one of a same name and a previous address. I am not sure you can perform a search by name only, you only (I believe) perform a search by address.

Even if you purchased a house under the threshold, I think you still submit a STAMP Duty return. It just shows that the transaction is exempt from the tax. This still records your NI number.

In my view this still remains the best way of checking. I also imagine you will have to sign a declaration with a hefty fine if you are found to be 'tax evading'.

Dead on BVI - I now see that the FTB definition is far from obvious.

In my mind though a buyer can only be a first time buyer once and once only.

I take it then that the other loophole whereby a home is bought for cash ie. without any need for mortgage application would still require the Stamp Duty return - meaning the NI Number has to be the single point for checking (or single point of failure - depending on how you look at it) as regards FTB status?

I did not realise that the NI Number was recorded as part of a property purchase transaction - but then again as a fully paid up member of the FTB clan I wouldn't have known that.

[BelfastVI]

Dead on BVI - I now see that the FTB definition is far from obvious.

In my mind though a buyer can only be a first time buyer once and once only.

I take it then that the other loophole whereby a home is bought for cash ie. without any need for mortgage application would still require the Stamp Duty return - meaning the NI Number has to be the single point for checking (or single point of failure - depending on how you look at it) as regards FTB status?

I did not realise that the NI Number was recorded as part of a property purchase transaction - but then again as a fully paid up member of the FTB clan I wouldn't have known that.

From memory it is. I will check to make sure.

With the previous Stamp Holiday everyone, including once rich BTL'ers could avail of the offer. At least now it is limited to FTB'ers and I am glad to see that.

Yes, regardless if you purchase a property with a mortgage or cash, or for that matter get it free (granted in a will) you have, by law to register your interest in the property within 28 days. It is this that you have to pay the stamp on. The stamp is payable on what you paid for the property, or open market value, whichever is the highest.

[Tenzen]

Great news for me.

Completing on Friday and am now stamp duty exempt. I am a FTB. Phoned the solicitor seconds after it was announced, clear as crystal, no Stamp Duty needs to be paid as it goes into effect tonight!

[CS111]

Nice one.

[lolacarrascal]

Dead on BVI - I now see that the FTB definition is far from obvious.

In my mind though a buyer can only be a first time buyer once and once only.

I take it then that the other loophole whereby a home is bought for cash ie. without any need for mortgage application would still require the Stamp Duty return - meaning the NI Number has to be the single point for checking (or single point of failure - depending on how you look at it) as regards FTB status?

I did not realise that the NI Number was recorded as part of a property purchase transaction - but then again as a fully paid up member of the FTB clan I wouldn't have known that.

I assumed that the exemption related to the transaction price, not the status of the buyer. Would make much more sense. What's all this about defining a FTBer?

[Patfig]

How many FTB's are looking to spend up to 250K? the mind boggles!!

[pootle]

Care to expand on this?

It only really helps FTBs who have currently agreed on a price and are in the process of buying. For all future sales the prices the sellers are asking for will just go up to absorb the benefit. FTBers will pay the same as before and the sellers will get the extra cash from the tax break. However, not many FTBers (or anyone else other than current sellers) will realise this and so it is seen as the nice kind government trying to help people get on the property ladder ... nothing to do with the election, oh no not at all! That's why the measure they are using to pay for this (double stamp duty for £1M+) isn't coming into force until 2011 ... nothing to do with the election, oh no not at all!

[SPADER]

It only really helps FTBs who have currently agreed on a price and are in the process of buying. For all future sales the prices the sellers are asking for will just go up to absorb the benefit. FTBers will pay the same as before and the sellers will get the extra cash from the tax break. However, not many FTBers (or anyone else other than current sellers) will realise this and so it is seen as the nice kind government trying to help people get on the property ladder ... nothing to do with the election, oh no not at all! That's why the measure they are using to pay for this (double stamp duty for £1M+) isn't coming into force until 2011 ... nothing to do with the election, oh no not at all!

Goodness, you are a cynical sausage!

[BelfastVI]

I assumed that the exemption related to the transaction price, not the status of the buyer. Would make much more sense. What's all this about defining a FTBer?

It is limited to First Time Buyers.

[pootle]

Goodness, you are a cynical sausage!

I prefer to see myself as a rational realist

I stand by my analysis!

[ravedave]

http://news.bbc.co.uk/1/hi/business/8585903.stm

According to the Treasury, a first-time buyer is classed as someone who has not previously owned a property anywhere in the world. So even though you don't currently own your own home, the fact that you have previously means you aren't eligible for the stamp duty holiday

http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf

The Purchaser

- must be a person who intends to occupy the property as his or her main residence. This excludes purchases by corporate bodies, partnerships or trustees, with limited exceptions.

- the purchaser must not, either alone or with others, have previously acquired a major interest in land which includes residential property, or an equivalent interest in land situated anywhere in the world. This includes previous acquisitions by a financial institution on behalf of a person under an alternative finance scheme referred to in FA03/S71A-73.

- This restriction does not apply where the interest acquired was the grant or assignment of a lease with less than 21 years to run.

Q1. What is a first time buyer?

A. A person who has not acquired a freehold or leasehold interest in residential property in the UK (except a lease with less than 21 years to run) or an equivalent interest anywhere in the world.

Q4. I want to buy a house with my partner but one of us has previously owned a residential property. Can we claim the relief?

A. No. All of the buyers, when there are more than one, must be a first time buyer.

Q7. Can I get relief if I have previously owned an inherited property?

A. No. In this case a person will previously have acquired a major interest in a residential property.

[BelfastVI]

Thanks Raveddave, that ties that up perfectly

[Malthus]

I think you guys have been distracted by the question of who is a first time buyer.

This is just like the other scams like shared equity which are designed to get FTB's to over pay for property.

Dear help the people who buy based on this when interest rates rise.

[Chicken]

How do they know if you've owned any property elsewhere in the world?

[BelfastVI]

I think you guys have been distracted by the question of who is a first time buyer.

This is just like the other scams like shared equity which are designed to get FTB's to over pay for property.

Dear help the people who buy based on this when interest rates rise.

This is simply the removal of a taxation or Government intervention in the market for first time buyers. We are happy that unlike, the last Stamp Duty holiday this one is reserved for FTB'ers.

Can you explain the scam?

[pootle]

This is simply the removal of a taxation or Government intervention in the market for first time buyers. We are happy that unlike, the last Stamp Duty holiday this one is reserved for FTB'ers.

Can you explain the scam?

The problem is that, with a very few exceptions who are already in the process of buying, it doesn't help first time buyers! I explained it 10 or so posts back.

[Cicero]

Great news for me.

Completing on Friday and am now stamp duty exempt. I am a FTB. Phoned the solicitor seconds after it was announced, clear as crystal, no Stamp Duty needs to be paid as it goes into effect tonight!

Fortuitous good luck!

[BelfastVI]

The problem is that, with a very few exceptions who are already in the process of buying, it doesn't help first time buyers! I explained it 10 or so posts back.

Do you think every builder out there is going to work out exactly what the stamp duty would have been on their house and increase their prices by that amount. Don't think so.

It thes had of increased the rate it would have put more people off. By removing it, it makes the purchasing of a house that bit more affordable.