SDLT and First Time Buyer Relief

Posted on December 07, 2017

One of the eye-catching headlines from the Chancellor’s Budget in November was the introduction of SDLT relief for first time buyers for purchases of residential properties where the price does not exceed £500,000.

There are a number of conditions set out in guidance notes issued by HMRC, but the main conditions are that: 

  • All buyers must be first time buyers.

This means that each buyer must not have previously owned either alone or jointly a residential property in the UK or anywhere else in the world. This includes any properties acquired by inheritance or gift, but it does not include acquisition as a trustee unless the buyer was also a beneficiary of the trust.

  •  No relief is available if one of the buyers is a company
  •  All the buyers must have a clear intention to occupy the dwelling as their only or main residence

Provided all the conditions set out in the guidance notes are satisfied, the rates of SDLT applicable are:

  • 0% on the first £300,000; and
  • 5% on the amount above £300,000 up to £500,000. 

If the purchase price is over £500,000, no relief is available and SDLT at the relevant rate is payable.

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