Q: I understand that relief from Stamp Duty Land Tax has been re-introduced for first-time buyers. Can you tell me more about this, please?
A: First Time Buyer Relief was introduced by the Chancellor on 22nd November 2017 and applies to all relevant transactions provided the effective date of the transaction is on or after that date.
The purchase must be of a single dwelling.
The relevant consideration must not be more than £500,000 and on a dwelling purchased by a first-time buyer intending to occupy the dwelling as the main residence or as the only residence.
There must be no linked transactions (Other than the purchase of a garden or grounds that subsist for the benefit of the dwelling).
A first-time buyer is an individual who has never previously acquired a major interest in a dwelling (or an equivalent interest in land) situated anywhere in the world. Such an interest could be acquired by inheritance or gift. It does not apply to acquisition as a Trustee. If the property is owned jointly, all of the purchasers must meet all of the conditions.
The effective date of the transaction is normally completion but can be earlier if the transaction has been substantially performed before that date. For example, the buyer taking possession or the vendor receiving 90% of the sale proceeds.
The effect of the relief depends on the relevant consideration.
Up to £300,000, no Stamp Duty Land Tax is payable. For acquisitions over £300,000 and up to £500,000, Stamp Duty Land Tax is payable at 5% on the surplus over £300,000.
The relief must be claimed on a land transaction return using code 32 in the appropriate field of the return.