On 24th March in his budget, the Chancellor introduced relief from stamp duty land tax (SDLT) for first time purchasers of property (who are buying their main and only home) up to the value of £250,000.
First time buyers have been defined as those who have never owned a freehold or leasehold interest in a property here or abroad. Currently SDLT is 1% for residential purchases between £125,000 and £250,000 so this could be a considerable benefit for individuals. It is our opinion that because first time buyers make up only a small part of the market, that this is more a headline catching gimmick than a serious measure.
Effectively the starting threshold for payment of SDLT for first time buyers has been raised to £250,000. This will apply to transactions with an effective date of 25th March 2010 and will last for two years.
The relief is normally claimed on a buyer’s behalf by their legal adviser as part of the standard legal work. All parties to the purchase must qualify as first time buyers for the relief to apply, but these buyers can be of any age. No retrospective relief is available.
