Relief for homebuyers with stamp duty changes
Bermudians looking to buy their first home will qualify for instant stamp duty relief under a law passed in the House of Assembly on Friday.
Previously, new homeowners had to prove that they had lived in their property for three years before they qualified for the benefit.
That stipulation has been dropped under the Stamp Duties Amendment Act, which will allow first-time buyers to purchase a home without having to pay the duty up front.
Introducing the Bill in the House of Assembly on Friday, Wayne Furbert, the Minister for the Cabinet Office, acknowledged that families faced “a significant barrier” in buying their first home, and that a change in the regulations “could bring about significant savings immediately for people struggling to get on the housing ladder”.
“It’s clear that the PLP has listened. That’s why this Bill is here today,” Mr Furbert said.
David Burt, the Premier, had said earlier that the Act would simplify procedures for first-time buyers.
He said: “What this does is to clarify certain provisions around that and also to make sure that there is no question in law as to whether or not those mortgages could be transferred and additional stamp duty has to be paid on the transfer of those mortgages.
“The amendments are not major. They are more technical amendments to clear up some misunderstandings.”
Scott Pearman, for the opposition One Bermuda Alliance, questioned if the Bill would be workable.
Mr Pearman praised the Government for abolishing stamp duty for first-time buyers back in 2009, but said that that legislation had been “half-baked”.
He also asked why the relief was limited to properties under $750,000.
He said: “The road to hell is paved with good intentions. This Bill is a perfect example of why that adage holds true.”
He added that the previous law was an example of “decision-making in a vacuum” that demonstrated “a lack of joined-up thinking”.
Mr Pearman said: “The $750,000 cap may have covered lots of properties in 2009, but in 2022 I doubt if there are many, if any. That number needs to be moved up.”
Mr Furbert replied that the figure could be reviewed at a later date.
The Bill was passed.
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