Legal News | 20.11.23
First-time buyer stamp duty relief
After agreeing to buy a property, one of the first factors you might consider is the finances involved, including how much Stamp Duty Land Tax (SDLT) you will pay. You may wonder if you are eligible to claim any SDLT reliefs to reduce the Stamp Duty that is payable.
Who qualifies for first-time buyer relief?
One of the most common reliefs is first-time buyer relief, but who can claim this?
To be an eligible ‘first-time buyer’ for the purposes of SDLT, you must not have ever owned or had an interest worth at least £40,000 in a property. This includes properties anywhere in the world (not just in the UK) and also includes any interests in properties that you have acquired through inheritance or as a gift.
If you are married and your spouse owns or has owned property that falls within the above criteria, then you will not be a first-time buyer even if you meet the criteria yourself. This also applies if you have children under 18 who have owned property.
Once you have determined whether you classify as a first-time buyer, there are some other considerations to take into account to establish whether you can claim the relief, namely:
- All purchasers who will be named on the title deeds must be first-time buyers;
- You must intend to live in the property you are buying;
- You must be buying the property as an individual (not a company); and
- The property you are buying must not cost more than £625,000.00.
If you are eligible for the relief, then (depending on the property value) you may still have to pay some SDLT, but in a lot of cases there is nothing at all to pay.
If you are unsure whether you qualify for first time buyer relief, or if you are looking for a conveyancer to handle your purchase, please contact our Residential Property team 01380 733367 | firstname.lastname@example.org