Effective legal intelligence
Real Estate
Wednesday 18th January 2012

Deadline for Stamp Duty Relief expires 24 March 2012!

First Time Buyers

The statutory relief for first-time buyers of residential property in relation to SDLT is drawing to a close. It ends on 24 March 2012.

It applies at the moment if all of the following apply:

· the effective date is on or after 25 March 2010 and before 25 March 2012

· the consideration given is £250,000 or less

· the buyer intends to live in the property and it will be their only or main home

· they have not previously owned property or land either in the UK or anywhere else in the world - including property bought with anyone else

This means that from 25 March 2010 to 24 March 2012 inclusive the threshold for qualifying first-time buyers of residential property is £250,000.

When first-time buyer’s relief does not apply:

The relief is not available for any of the following:

· non-residential or mixed use property

· leasehold property with a lease of less than 21 years

· SDLT payable on rent for leasehold properties (relief applies only to the premium)

· properties that are treated as linked transactions for SDLT purpose - unless it’s to do with the same property, eg a separate lease on a garage

· shared ownership schemes where the payment is made in stages (but the relief can be claimed if a market value election is made)

· one of the buyers is a first-time buyer but someone buying the property with them has owned residential property before

Claire Prince





All articles on this website do not necessarily cover every aspect of a topic and are designed for information purposes. Reliance should not be placed on their contents without specific legal and financial advice first being taken.

Back to latest news