Stamp duty land tax relief for first-time buyer’s information and useful links to government websites provided below.
Since 22 November 2017, if you are purchasing a residential property that costs £500,000 or less, you may be entitled to stamp duty relief. If you purchased a property that completed before this date, unfortunately the first-time buyer relief does not apply to you.
Who qualifies for first-time buyer stamp duty relief?
The relief applies to purchases made in England, Wales, and Northern Ireland. There are a number of conditions that you must meet in order to be eligible for the relief. There’s a full guide provided on the gov.uk website which you can access using the following link: https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note
What relief will you get?
The amount of relief you will receive is based on the cost of the property you are purchasing. The first £300,000 of the purchase price will be exempt from stamp duty. This means, as a first-time buyer, you may not have to pay stamp duty at all. For any amount that exceeds £300,000, stamp duty will be charged at an amount of 5%. Unfortunately, if your transaction goes over £500,000, the relief won’t apply to you.
You can access a government calculator here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How do you claim first-time buyer stamp duty relief?
As a rule of thumb it states that ‘Relief must be claimed either in a land transaction return or an amendment to that return’. We would recommend however that you read the guidance – specifically Chapter 7 for more information on this; which can be accessed via this link https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note