FIRST TIME BUYER’S RELIEF
Have you heard that relief from Stamp Duty Land Tax has been re-introduced for first-time buyers?
First Time Buyer Relief was introduced on 22nd November 2017 and applies to all relevant transactions. The effective date of the transaction has to be on or after this date and the purchase must be of a single dwelling.
Who is a first-time buyer?
A first-time buyer is a person who has never previously owned or had an interest in a dwelling or 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.
What are the conditions?
The value 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 also can’t be any linked transactions (other than the purchase of a garden or grounds that subsist for the benefit of the dwelling).
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 value:
- 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.
Get in touch with Your Tax Shop today on 01457 837744 or 0161 339 5689