Stamp Duty Land Tax: relief for first time buyers

From 22 November 2017 first time buyers paying £300,000 or less for a residential property will pay no Stamp Duty Land Tax (SDLT).

First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5,000 compared to the amount of SDLT they would have previously paid.

A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.

First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

The relief must be claimed in an SDLT return.

Stamp Duty Land Tax: higher rates – minor amendments

In relation to transactions on or after 22 November 2017, relief from tax due under the higher rates of Stamp Duty Land Tax (SDLT) may be granted in certain cases, including where a divorce related court order prevents someone from disposing of their interest in a main residence, and where a spouse or civil partner buys property from another spouse or civil partner, and where a deputy buys property for a child subject to the Court of Protection, and where a purchaser adds to their interest in their current main residence.

Annual Tax on Enveloped Dwellings

The annual charges for the Annual Tax on Enveloped Dwellings (ATED) will rise in line with inflation for the 2018/19 chargeable period.

Annual chargeable amounts for the 2018/19 chargeable period will be as follows (2017/18 rates shown in brackets):

  • Property value £500,001 to £1 million – £3,600 (£3,500)
  • Property value £1,000,001 to £2 million – £7,250 (£7,050)
  • Property value £2,000,001 to £5 million – £24,250 (£23,550)
  • Property value £5,000,001 to £10 million – £56,550 (£54,950)
  • Property value £10,000,001 to £20 million – £113,400 (£110,100)
  • Property value £20,000,0001 and over – £226,950 (£220,350)

Landfill Tax: disposals not made at landfill Sites

The scope of Landfill Tax is to be extended to cover disposals made at sites that do not have an environmental disposals permit. The person disposing of the waste, and anyone who knowingly facilitates the disposal, may be liable for the tax. All parties involved could also be liable to penalties for non-compliance or face criminal prosecution. Safeguards will be put in place to ensure that landowners, and people in the waste supply chain who, in spite of carrying out all reasonable due diligence, were unknowingly involved in the illegal dumping won’t be assessed for any tax or penalties. At sites with a permit, all material disposed of will be taxable unless expressly exempt – new exemptions will be introduced to cover material currently outside the scope of landfill tax. These measures will take effect from 1 April 2018.

VED: introduction of the diesel supplement

A new supplement will apply to new diesel vehicles from 1 April 2018 to the effect that these cars will go up by one Vehicle Excise Duty (VED) band in their First-Year Rate. This will apply to any diesel car that is not certified to the Real Driving Emissions 2 (RDE2) standard.

Fuel rates frozen

The fuel duty rise, which was scheduled for April 2018, has been cancelled and rates have been frozen at 57.95 pence a litre for the eighth year running.

Air passenger duty rates

As announced at Autumn Budget 2017, the Air Passenger Duty long-haul standard rate will be increased to £172, and the long-haul higher rate increased to £515 on and after 1 April 2019. Short haul rates, and the long haul reduced rate for economy passengers will be frozen at 2018/19 levels.

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