SDLT relief for First Time Buyers

Special Relief for First Time Buyers

First-time buyers can benefit from a lower rate of Stamp Duty Land Tax (SDLT), but does not apply if the property price is above the set threshold. A full explanation can be found on the government website.

Definition of First-Time Buyer

• A first-time buyer is defined as someone who has never owned a freehold or leasehold interest in a dwelling before and who is purchasing their only or main residence.
• Residential property anywhere in the world (whether bought or inherited) is included when determining whether someone qualifies as a first-time buyer.
• All individuals in a purchase must be first-time buyers for any of them to be eligible for the relief.

Simplified Treatment of Shared Ownership Schemes

In November 2018, the Chancellor simplified the SDLT treatment for first-time buyers in approved "Shared Ownership" schemes. First-time buyers in these schemes can now obtain the same relief as other first-time buyers

Frequently Asked Questions

I'm a first-time buyer but I'm buying with someone who isn't. Do I get the lower rates?

No - unfortunately not. To qualify for the relief all individuals have to be first-time buyers.

What is the purchase price limit to be able to benefit from first-time buyer relief?

If the property is up to £425,000 you will pay no stamp duty. If the property is between £425,001 to £625,000 you will pay 5% stamp duty on that portion. 

I'm buying with someone else. Is that shared ownership?

No - In common language you might be tempted to describe this as shared ownership but joint ownership would be more accurate. What you read online about Shared Ownership relates to various approved schemes that allow individuals to purchase a fraction of a property while renting the rest - not to be confused with joint-ownership in general.

I qualify as a first-time buyer and wish to purchase a buy to let property, can I still claim the relief?

No – unfortunately not. You must be purchasing a property for yourself that you intend to occupy as your only or main residence.

I am purchasing a property in Scotland/Wales. Can I claim first-time buyer relief?

No, SDLT and reliefs for SDLT only apply to properties in England and Northern Ireland. Properties in Scotland and Wales are governed by separate taxes and reliefs.

Is there an age limit on claiming first-time buyer relief?

No. First-time buyers can be any age.