First Time Buyers relief from SDLT

From 22 November 2017, first time buyers of residential property in England for £500,000 or less and where the purchaser intends to occupy the property as their only or main residence will be entitled to relief from Stamp Duty Land Tax (‘SDLT’).

Those purchasing for £300,000 or less will pay no SDLT and where the purchase price is over £300,000, but does not exceed £500,000, they will pay 5% on the amount above £300,000.

The detailed legislation covering first time buyers’ relief can be found in Schedule 6ZA, to Finance Act (FA) 2003. This abbreviated note only covers the headlines points of the legislation and cannot be relied upon for taxation or legal advice. The advice we can give you will be set out in more detail in our terms of engagement letter.


Conditions for the relief to apply

  1. Purchase of a single dwelling
    Usually, ascertaining if this applies will be relatively straightforward. Issues that can cloud this are where only part of a property is acquired or where there is an annex
  2. Relevant consideration is not more than £500,000
    Please note that if the price is over this figure then absolutely no relief applies.
  3. The purchaser or purchasers are first time buyers intending to occupy the dwelling as a main residence
    Only purchasers who are individuals are entitled to claim relief. If the purchaser is a company then no relief is available.

Please note:

All the purchasers must be first time buyers meaning they have never owned any residential property anywhere in the world even if this was inherited or they held as beneficiary under a trust

All the purchasers must intend to occupy the dwelling as their only or main residence.