SDLT First Time Buyer Relief
In the Budget on 22 November 2017, the Chancellor of the Exchequer announced a relief from stamp duty land tax (SDLT) for first time buyers.
The First Time Buyer Relief applies where:
- there is a purchase of a single dwelling,
- the purchase price is not more than £500,000,
- the purchaser or, if there is more than one, each of them, is an individual,
- the purchaser or, if there is more than one, each of them, is a first time buyer, who intends to occupy the dwelling as their only or main residence,
- the effective date of the transaction is on or after 22 November 2017
Where relief is available the rates of SDLT applicable are:
- 0% on the first £300,000 of the purchase price, and
- 5% on the amount above £300,000.
Q&A Guidance from the Government Website
When does the relief apply from?
The relief is available for transactions with a completion date, on or after 22 November 2017.
Is there a price limit for claiming the relief?
Yes, the relevant consideration must not exceed £500,000.
I am a first time buyer but completed just before 22 November 2017, can I have a refund?
No, you will not be able to get a refund.
I am a first time buyer but my spouse owned a dwelling before we were married. Do we qualify for first time buyer’s relief?
No. For joint purchasers, all purchasers must be first time buyers.
How do I work out how much tax I have to pay?
You can find a calculator on the HMRC website at: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax
I previously bought a house jointly with my spouse/partner. The relationship has broken down so can I be treated as a first time buyer?
No. Where a person has previously acquired an interest in a dwelling as a joint tenant or a tenant in common, that person is not a first time buyer.
Can I claim relief if I have inherited a dwelling and am using the sale proceeds to purchase a home?
No, if the inheritance resulted in you acquiring a freehold or leasehold interest then you cannot claim first time buyers’ relief.
Can I get relief if I have previously owned an inherited property?
No, if the inherited property was a freehold or leasehold interest in a dwelling.
We are first-time buyers buying a dwelling jointly but only one of us intends to use the property as our only or main residence. Can we claim the relief?
No. All the purchasers must intend to use the property as their only or main residence.
Does having held a previous interest in a dwelling include a beneficial interest?
If you have previously held a beneficial (sometimes referred to as equitable) interest in a dwelling (except a leasehold interest of less than 21 years duration) you cannot claim first time buyers’ relief.
Can I claim relief if I have previously bought a dwelling as a trustee?
Yes, provided that you were not also a beneficiary of the trust and you meet the other conditions.
Can I claim relief if my parents bought a house for me as a student?
Not if you owned the house. Relief would be available if your parents owned the house in their names and you have never owned a dwelling.
I currently live in rented accommodation but own a dwelling that is rented out. I am now looking to purchase my first home, for me and my family to live in. Will I get first time buyers’ relief?
No. The relief can only apply to individuals who have not previously owned a dwelling either in the UK or anywhere in the world.
Is there an age limit on claiming the relief?
No. First time buyers can be of any age.
If you are unsure of any aspects of the First Time Buyer Relief please do not hesitate to contact our conveyancing team on 0151 480 5777 or at email@example.com