Budget 2010: When is a first-time buyer not a first-time buyer?
The UK government today announced stamp duty relief for first-time buyers acquiring properties up to a value of £250,000. However, before the ink is even dry on Alistair Darling budget report the move has come in for significant criticism due in the main to the government's definition of a first-time buyer.
According to HM Revenue and Customs (HMRC) in order to qualify for the stamp duty relief a buyer must not have acquired a major interest in residential property, not have acquired foreign property and the purchase must not involve a company, partnership or trustees - with some debate as to whether those who have inherited property in the past would qualify. The truth again is that the government has grabbed the headlines with this £250,000 first-time buyer's stamp duty relief but there is already debate as to whether "9 out of 10" first-time buyers will benefit as the government indicated today.
The rules themselves are very restrictive, very confusing and will almost certainly delay the number of first-time buyers actually receiving the relief. Whether the criteria will be widened in the short to medium term to again grab the attention of property buyers and voters in the UK remains to be seen but after the initial excitement there is now concern about the way the scheme will operate.
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