What is First Time Buyer Relief and Who Qualifies?
The First Time Buyer Relief is one of the reliefs within the Stamp Duty Land Tax (SDLT) regime. This relief is available in England and Northern Ireland for house purchases and is unavailable in Wales and Scotland. The relief is applicable to individuals who have never owned a residential property in the UK or anywhere else in the world and intend to live in the property as their main and only residence. The relief is applicable for properties worth up to £625,000 and must be claimed through the SDLT return and is subject to certain conditions and exceptions.
How Do SDLT Rates Differ for First Time Buyers?
Depending on whether you are a UK resident or not, the SDLT rates may vary. The SDLT tax rates are as follows:
| Slab | Tax Rate (UK Residents) | Tax Rate (Non-UK Residents) |
| Up to £425,000 | 0% | 2% |
| £425,001 to £625,000 | 5% | 7% |
What are the Criteria for Claiming First Time Buyer Relief?
As mentioned earlier, First Time Buyer Relief has a few conditions that need to be met before making a claim. These conditions include:
- Only available to individuals
- Purchase of a single Dwelling
- Never Owned an Interest in a Residential Property
- Property Acquired for Residential Use
- Intention to Occupy the Dwelling as a Main Residence
- The relevant consideration is not more than £625,000
- Not a Linked Transaction
Once all the above conditions have been met, the First Time Buyer Relief must be claimed through the SDLT Return.
You can learn more about First Time Buyer Relief through our complete guide.
