THOUSANDS of first-time buyers have been warned to act now to save up to £15,000 in Stamp Duty.

The amount you can spend on a property before incurring Stamp Duty will fall on March 31 2025, penalising thousands of would-be homeowners.

1

Stamp Duty is a tax you may have to pay if you buy a home in England or Northern Ireland that is worth more than a certain price.

For most homeowners this is above £250,000.

But the amount that a first-time buyer could spend was increased to £425,000 in the September 2022 mini-budget.

First-time buyers also benefit from a further discounted rate on property purchases of up to £625,000.

From April these thresholds will plummet.

Properties with a value of up to £300,000 will not incur a Stamp Duty charge, while the reduced rate will only apply to homes worth up to £500,000.

The changes will mean that someone buying a property worth £425,000 would currently pay no Stamp Duty but from April will owe the taxman £6,250.

But in some areas of London first-time buyers could be slapped with tax bills which are £15,000 higher than before once the thresholds are slashed.

Should I act now?

It usually takes around 25 weeks from listing a property to completing a sale, according to property website Zoopla, which means buyers have limited time to beat the deadline.

David Hollingworth, of mortgage broker L&C, said first-time buyers should act now to avoid being penalised.

“First time buyers wanting to be sure that they can take advantage of the elevated Stamp Duty relief before it reverts to the lower levels in March will want to be in the process as soon as possible.”

Although a first-time buyer may be able to move quickly, the person they are buying the property from may be in a transaction chain, he explains.

This is when you want to buy a house but need to wait until your seller buys their next property.

Buying a property can also take longer than people think as it may take time for an offer to be accepted because of practical issues or completing legal paperwork.

He adds: “Having as long as possible to keep things on track for a March deadline will be important, especially with Christmas on the horizon.”

The festive season frequently brings the property market to a standstill which can slow the process of buying a house and push completion dates into the New Year.

Incentives such as Stamp Duty “holidays” can also create a cliff edge deadline, which can create a busier period in the property market as buyers rush to complete their purchases.

But there may be hope for buyers who have not yet started the process.

The Chancellor could unveil plans to extend the policy in the Budget on October 31, which would give buyers more chance to complete their purchase.

The last Stamp Duty holiday was extended for three months in order to allow buyers to complete on their purchase if they were stuck in a housing chain.

The holiday had been introduced to help keep the property market afloat during the pandemic after thousands of property transactions fell through.

It was extended after calls from home buyers and experts to allow more time to finalise property sales.

Where are the cheapest areas to buy?

The average price of a first-time buyer property can vary substantially depending on where you live.

Hull is the cheapest area in the UK to purchase a home for the first-time.

A typical first property in the area is worth £114,300, more than half of the average sold price of a home in the UK, which is £328,457 according to Zoopla.

Sunderland comes in second place at £122,600 for an average first home.

Meanwhile, Burnley and Dundee were also ranked as affordable areas, coming in third and fourth place respectively at £128,800 and £131,700.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Chancellor Rachel Reeves is set to scrap plans to change pensions tax relief on personal contributions in the upcoming Budget, according to a report in the Times.

There had been widespread speculation that Reeves might target pensions tax to help plug a £22bn ‘black hole’ in the nation’s finances.

However, there are now reports that she no longer plans to do so.

Individuals currently receive tax relief at their highest marginal rate of income tax.

There were rumours that this might be changed to a flat rate, somewhere between the basic and higher rates of income tax.

Aegon pensions director, Steven Cameron, said that a flat rate of relief of 30% would have been a boost for basic-rate taxpayers.

However, he added that higher- and additional-rate taxpayers would likely have faced a “double whammy” of less generous tax relief on their personal contributions and a new tax bill linked to employer pension contributions.

Director of public affairs at the Lang Cat, Tom McPhail, described the news that the government has “had a rethink” as “unsurprising”.

“It would have broken an election pledge (to not increase income tax); it would have been fiendishly complicated to do and it would have upset millions of public-sector workers,” he said.

“More likely now, is that they’ll introduce some form of death tax on unused pension funds (unless passing to a spouse) and perhaps a cut to employers’ relief on National Insurance contributions.”

A “BATTERED” toy car which has seen better days is still set to fetch a whopping price of £2,400 when it goes under the hammer.

The toy van has a crack in it and the paint is peeling off but is still expected to fetch the huge sum as it is a rare pre-World War 2 example.

5

5

Advertisement

5

The pale green Palethorpes Delivery Van was one of the earliest Dinky models made in the 1930s.

It has a crack on its passenger door and part of the lettering has faded away over the decades.

But it is still set to spark a bidding war at Vectis Auctions, of Stockton-on-Tees, Teeside.

The 3.75ins long lead toy has been consigned by a British collector.

Andrew Reed, Vectis specialist, said: “We believe this Palethorpes delivery van was made between 1934 and 1936 so it is one of the earliest Dinky toys from the Liverpool factory, boosting its appeal with collectors.

“Some like the toys to be in pristine condition but others prefer them to be in ageing and showing wear.

“There is a nostalgia among wealthy older buyers for Dinky toys.

“They would have played with the toys as children and have the disposable income to collect them as they have paid their mortgages off.”

Dinky Toys were made by British toy company Meccano Ltd from 1934 and pre-dated other marques like Corgi, Matchbox and Mattel’s Hot Wheels.

The Dinky trade name was bought up by Matchbox International Ltd in the late 1980s.

The sale takes place tomorrow.

In April this year, a pensioner sold his extensive collection of toy cars for a massive £75,000, after his grandkids didn’t want to inherit them.

Harrie van de Bosch, 80, put over 800 mini car toys up for sale and made the tidy sum on them at an auction.

Among the pricey collection was iconic Ferrari and Maserati models and a particularly unique Weetabix truck.

The final set of toys consisted of over 150 Dinky Toys and hundreds of Bedford Vans that were almost all fully boxed.

The collection started off with the classic Matchbox cars followed by Corgi Chipperfields models before he started to find the more premium toys.

His first ever Dinky Toy was a Citroen Philips Van.

5

Advertisement

5

Don’t want full access? REGISTER NOW for limited access and to subscribe to our newsletters.

True Potential has announced Tesco Bank CEO Gerry Mallon as its new chief executive officer.

He will replace the platform investment firm’s co-founder and CEO Daniel Harrison, who announced last week he was standing down after seven years in the role.

Mallon will join True Potential as its CEO in early 2025, subject to regulatory approval.

True Potential’s chief information officer, Jeff Casson, will take on the role of interim CEO until Mallon starts.

Mallon most recently served as chief executive of Tesco Bank for over six years and was also a member of the Tesco Plc executive committee.

He was previously chief executive of Ulster Bank Ireland and Danske Bank UK.

He has also held leadership and advisory positions at McKinsey & Co, Bank of Ireland and the UK Civil Service.

Commenting on his appointment, Mallon said: “I am looking forward to building on the impressive work of Daniel Harrison and his fellow co-founders, and to working with the highly talented team of colleagues to continue to help our clients do more with their money.”

True Potential chairman, Andrew Sibbald, added: “Gerry has excellent credentials, having served as the CEO of several large, consumer-centric financial-services businesses both in the UK and Ireland.

“He understands the entrepreneurial culture of True Potential, the critical role advisers play in our business and that our customers are at the heart of everything we do.”

True Potential is partly owned by private equity firm Cinven.

The firm said Harrison’s departure last week was part of a planned transition following the acquisition in September 2021.

Partner and head of the financial services and consumer teams at Cinven, Maxim Crewe, said: “We have been focused to ensure that the next stage of leadership for True Potential will continue to uphold the key client-centric values that attracted us to invest in the business.

“Gerry, with his relevant experience, is well-placed to continue to support True Potential on its growth journey.

“We are excited to welcome him on board in due course, and for now Jeff will be focused on his interim role.”