Stamp duty cut rolled out to shared homes

The Daily Telegraph - Your Money - - MONEY - Sam Barker

First-time buy­ers of shared-own­er­ship homes will be ex­empt from stamp duty un­der plans un­veiled in the Bud­get.

The Chan­cel­lor said the ex­emp­tion would also be back­dated to in­clude all shared-own­er­ship homes bought since the last Bud­get in Novem­ber 2017.

Shared own­er­ship is meant to help young peo­ple on to the hous­ing lad­der.

The sys­tem lets home­own­ers buy a share of a prop­erty of be­tween 25pc and 75pc. The buyer pays off a mort­gage on their share and pays rent on the rest.

In the 2017 Bud­get Mr Ham­mond abol­ished stamp duty for first­time buy­ers on homes worth up to £300,000.

Those who buy homes worth be­tween £300,000 and £500,000 re­ceive par­tial stamp duty ex­emp­tion. How­ever, many shared-own­er­ship homes did not ben­e­fit from the orig­i­nal stamp duty ex­emp­tion for first-time buy­ers.

This is be­cause shared-own­er­ship buy­ers have a choice of how to pay stamp duty. They can pay it on the to­tal value of their prop­erty in one lump sum, or spread the pay­ments over time. Most choose the lat­ter, as it means a lower bill at the out­set. They sim­ply pay stamp duty on the part of the house they own, then pay more as they in­crease their stake.

How­ever, the first-time buyer stamp duty ex­emp­tion an­nounced in 2017 did not ap­ply to those who chose this op­tion.

The Gov­ern­ment has now cor­rected this, in a move that will be wel­comed by peo­ple try­ing to get on the prop­erty lad­der such as Au­gusta Con­nor, Vicki Lask­ier and Ly­dia Walder from Hert­ford­shire.

The stamp duty ex­emp­tion has saved £284m since it was brought in and has been used in the pur­chase of 121,500 homes.

Au­gusta Con­nor, Vicki Lask­ier and Ly­dia Walder aim to get on the prop­erty lad­der

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