Stamp Duty Land Tax for First Time Buyers

Update: Stamp Duty Relief for first-time buyers will not be extended beyond 25 March 2012.

First-time buyers of residential property can apply for Stamp Duty Relief 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 first time 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 first-time buyers of residential property to qualify for Stamp Duty Relief is £250, 000.

Financial institutions can claim the Stamp Duty Relief for first-time buyers using alternative finance schemes.

To claim this relief you'll need to enter relief code 32 in the SDLT return.


When first-time buyer's Stamp Duty Relief does not apply

Stamp Duty 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
  • Stamp Duty 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, e.g. 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