First Time Buyers
The statutory relief for first-time buyers of residential property in relation to SDLT is drawing to a close. It ends on 24 March 2012.
It applies at the moment 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 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 qualifying first-time buyers of residential property is £250,000.
When first-time buyer’s relief does not apply:
The 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
· SDLT 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, eg 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
Claire Prince
Partner
cprince@jpclaw.co.uk
