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SDLT Relief for First Time Buyers

First-time buyers now benefit from a permanent stamp duty land tax relief on purchases up to the amount of £300,000.

However the relief does not apply where:

  • the purchase is of an additional dwelling which is liable to the higher rates of SDLT; and
  • to the purchase of non-residential or mixed-use property.

The relief does not affect the amount of SDLT which may be payable on the rent payable under a lease.

The rates of SDLT applicable are:

  • 0% on the first £300,000 of the purchase price, and
  • 5% on the amount above £300,000.

Generally, this relief applies where the following criteria is met:

There Is a Purchase of a Single Dwelling

Relief is only available where there is a purchase of a single dwelling. A purchase of more than one dwelling in a single transaction will not attract relief. In order to determine whether a purchase consists of more than one dwelling the facts have to be considered. A self contained part of a building that can be run independently of the main building will be considered as a separate and individual dwelling.

The Purchase Price Is No More Than £500,000

Relief is only available where the transaction is not more than £500,000 but any rent payable under a lease is not included in this amount. Where a transaction is linked to another transaction the relief is still available however it is to be noted that if all the linked transactions exceed £500,000 then none of the transactions qualify for the relief

The Purchaser Is an Individual

Only individuals are entitled to claim relief. No relief is available to a purchaser who is a company

The Purchaser Is a First Time Buyer Who Intends to Occupy the Dwelling As Their Only Or Main Residence

A first-time buyer is someone who is purchasing their only or main residence and has never before owned a freehold or leasehold interest in a dwelling. When deciding whether someone is a first-time buyer any property owned abroad is also included as well as when there are joint purchasers then both purchasers would need to be first time buyers with.

The Purchase Is Not Linked to Any Other

The relief does not apply where the purchaser is linked to another land transaction except that land that forms part of the gardens or grounds of the house, or land that subsists for the benefit of either the dwelling or its garden and grounds.

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