First time buyers’ Stamp Duty Land Tax relief

Naomi Wilson of local solicitors Astle Paterson warns first time buyers that stamp duty land tax relief is about to end for them.

In his Budget on 24 March 2010 the Chancellor announced that legislation in the Finance Bill 2010 would introduce relief from stamp duty land tax (SDLT) for first time buyers.

The relief came into effect on 25 March 2010 and will last until 24 March 2012.  To obtain the relief the following conditions have to be satisfied:

• Only purchases of residential property for between £125,001.00 and £250,000.00 qualify.

Purchases of up to £125,000.00 do not currently attract SDLT;

• The purchaser (or, if there is more than one, all the purchasers) must never have owned any property before, whether alone or with others. 

This includes residential property, or an equivalent interest in land situated anywhere in the world (other than where the interest acquired was the grant or assignment of a lease with less than 21 years to run);

• The purchaser must intend to occupy the property as their only or main residence. 

This excludes purchases by corporate bodies, partnerships or trustees (with very limited exceptions) and obviously excludes buy to let properties.

The relief is time-limited to two years and will end on 24 March 2012.  If you are considering buying your first home you must complete the purchase by 24 March 2012 to take advantage of the tax relief.

The Chancellor has indicated that the relief will not be extended beyond 24 March 2012 and retrospective relief is not available either – so transactions that completed before 25 March 2010 will not qualify for relief.

The relief may not be claimed in conjunction with any SDLT relief apart from those which are in existence for Alternative Property Finance, the market value election for Shared Ownership Leases and the discounted sale price under Right to Buy.

Please contact the Astle Paterson conveyancing team on 01283 531366 if you are a first time buyer considering buying a house.  If you qualify, there is just enough time left to meet the deadline and to take advantage of the first time buyer SDLT relief.

We are also be happy to advise on sales, re-mortgages and property transfers.

February 2012