According to statistics published by HMRC more than 180,500 first-time buyers have benefitted from First Time Buyers Relief (FTBR). The relief introduced in November 2017 has saved eligible first-time buyers an estimated total amount of more than £426 million.
Mel Stride MP, Financial Secretary to the Treasury, said:
‘These statistics show that the government was right to offer a helping hand to first time buyers. Without this investment more than 180,500 new homeowners may have struggled in getting onto the property ladder. Maintaining the status quo was not an option.’
FTBR is a Stamp Duty Land Tax relief for eligible first-time buyers. The tax relief can be used when buying a residential property where the purchase price is no more than £500,000 in England and Northern Ireland. Land and Buildings Transaction Tax and Land Transaction Tax apply to property in Scotland and Wales.
The press release goes on to state:
‘The amount of relief reported should not be used to infer average house prices for first time buyers; first-time buyer purchases below £125k and above £500k are not included in the statistics as they are below the lower SDLT threshold (£125k) or ineligible for the relief (above £500k).For purchases up to £300,000 no SDLT is payable. Where the purchase price is between £300,000 and £500,000 SDLT at 5% is due on the amount above £300,000. For example, a property purchased for £450,000 would pay £7,500 SDLT (5% of £150,000). This gives a saving of up to £5,000 for each first-time buyer.’
Extension of FTBR
It was announced in the Autumn Budget 2018 that the relief for first-time buyers will be extended to purchasers of qualifying shared ownership properties who do not elect to pay SDLT on the market value of the whole property when they purchase their first share. Relief will be applied to the first share purchased, where the market value of the shared ownership property is £500,000 or less. This relief will apply retrospectively from 22 November 2017, meaning that a refund of tax will be payable for those who have paid SDLT after 22 November 2017 in circumstances which now qualify for FTBR.
Internet link: HMRC press release
The government has published a collection of documents in preparation for the scenario of the UK leaving the EU without a Withdrawal Agreement a so called ‘no deal’ Brexit.
The guidance states:
‘The government does not want or expect a no deal scenario. However, it is the duty of a responsible government to prepare for a range of potential outcomes, including the unlikely event of no deal. In the event of leaving the EU without a deal, legislation will be necessary to ensure the UK’s Customs, VAT and Excise regimes function as intended after the UK leaves the EU and so, on a contingency basis, HM Treasury and HM Revenue and Customs will lay a number of Statutory Instruments (SIs) under the Taxation (Cross-border Trade) Act 2018 (TCTA) and the EU Withdrawal Act 2018 (EUWA).’
We will keep you informed of developments.
Internet link: GOV.UK no deal brexit collection
The Economic Affairs Committee has warned HMRC that small businesses ‘could pay a heavy price’ for Making Tax Digital for VAT (MTDfV).
The Committee stated that HMRC has’failed to adequately support small businesses’ ahead of the introduction of MTDfV.
MTDfV is generally set to come into effect for the from 1 April 2019 for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. Under MTDfV, businesses must keep some records digitally and submit their VAT returns via an Application Programming Interface (API).
The Committee has urged HMRC and the government to ‘start listening’ to small businesses MTDfV concerns.
HMRC recently sent businesses within the scope of MTDfV so-called ‘encouragement letters’. These letters were sent to 200,000 businesses which are eligible to join the pilot scheme.
Please contact us for help with MTDfV.
Internet links: Parliament.uk/news tax.org.uk/news
It’s was an exciting start to the day, Crazy when you arrive with a monitor to run your prom presentation and realise you forgot your keyboard and mouse. But like all good accountants, we sorted it. Our branded water giveaway went down well right from the start and we got lots of interest in our making tax digital pitch.
The staff were brilliant in manning the stand and collecting lots of good enquires which we will be sure to try to convert into new clients.
There was a very good seminar – You’re hired. I wonder what inspired the title. Speakers sharing their experience in engaging the next generation of employees and more importantly keeping them.
The facilities at The Edge in the regenerated Wigan Pier area were superb.
We look forward to working in and with the Wigan Business Community. Contact us whether you have seen us at the Wigan Expo or not and we will help you with your accounting and tax matters.
HMRC has issued a Partnership Pack to help businesses carry out contingency planning and to help their customers, members and clients to:
- think about how they will need to adapt their business to comply with new systems, processes and controls
- assess the impact of the increased demand for customs declarations on their business
- consider whether they need to recruit and train additional staff
- stay up-to-date with these changes
Meanwhile the Confederation of British Industry (CBI) reports that ‘patience is now threadbare’ amongst UK businesses in regard to the government’s progress in its Brexit negotiations with the EU.
A survey, carried out by the CBI, revealed that 80% of firms believe that Brexit uncertainty is having a ‘negative impact’ on their investment decisions. The majority of businesses polled stated that they may have to implement ‘damaging’ contingency plans if no further progress is made by December.
Carolyn Fairbairn, Director General of the CBI, said:
‘The situation is now urgent. The speed of negotiations is being outpaced by the reality firms are facing on the ground.
‘Unless a Withdrawal Agreement is locked down by December, firms will press the button on their contingency plans. Jobs will be lost and supply chains moved.’
‘As long as ‘no deal’ remains a possibility, the effect is corrosive for the UK economy, jobs and communities.’
Internet links: GOV.UK partnership pack CBI news