Stamp Duty for First Time Buyers.

Stamp Duty Land Tax or SDLT is tax levied on the purchase of property and land in England and Northern Ireland. In Wales it is referred to as Land Transaction Tax (LTT) and in Scotland it’s known as Land and Buildings Transaction Tax (LBTT). They all share the same objective in that a percentage of the purchase price is taxed.

Am I eligible for first time buyer stamp duty relief?

First time buyers in England and Northern Ireland do not have to pay any stamp duty for a home up to £300,000. Please see the table below to see the current rates of SDLT for properties exceeding this.

PURCHASE PRICE OF PROPERTY	FIRST TIME BUYER STAMP DUTY RATES
Up to £300,000	0%
Over £300,000 to £500,000	5%
Over £500,000	Normal stamp duty rates apply

Stamp duty relief in Scotland.

If you are buying your first home in Scotland, then you’ll pay no stamp duty (LBTT) if it is worth less than £175,000. First time buyer stamp duty rates in Scotland are applied as follows:

PURCHASE PRICE OF THE PROPERTY	LBTT RATE FOR FIRST-TIME BUYERS (FOR SCOTLAND)
Up to £175,000	0%
£175,001-£250,000	2%
£250,001-£325,000	5%
£325,001-£750,000	10%
£750,001+	12%

Stamp duty relief in Wales.

In Wales there is no first time buyer stamp duty relief and you’ll pay the same LTT regardless of whether this is your first home or not. However, no-one in Wales pays LTT on property or land worth less than £180,000.

PURCHASE PRICE OF PROPERTY	LTT RATE FOR FIRST-TIME BUYERS
Up to £180,000	0%
Up to £180,001-£250,000	3.5%
£250,001-£400,000	5%
£400,001-£750,000	7.5%
£750,001-£1,5m	10%
£1.5m+	12%

Who counts as a first-time buyer?

In order to qualify as a first-time buyer, you must have never owned or had an interest in a residential property anywhere in the world. This extends to both freehold and leasehold properties.

I inherited a house, am I a first-time buyer?

An inherited property is a property you own, and therefore you will not be eligible.

I own a share of another property, am I a first-time buyer?

Owning a share of any property, regardless of the portion of the size will void your eligibility for first time buyer relief.

One of us is a first-time buyer, the other isn’t. Can we get stamp duty relief?

As above, if either party is listed on the title for another party they will not be eligible. The only means of proceeding is by purchasing the property solely in the name of the individual eligible for the relief. However, those who are married or in Civil Partnerships are considered a family untiL and therefore they will not be able to do so.

Can I get first time buyer stamp duty relief on a buy-to-let?

First-time buyer relief is only available if you are purchasing a property with the purpose of a residing in. However, you can let out other rooms in your home and still qualify for relief.

When is stamp duty paid?

SDLT is due 30 days after completion has occurred and you legally own the property. Your solicitor will request the funds from you and look to settle this on your behalf.

Can Help-to-Buy or Lifetime ISA bonus be used to pay SDLT?

Your Help to Buy or Lifetime ISA bonus is not eligible to be used for SDLT. The bonus must be claimed by your solicitor and included with the additional funds used for the transaction.

If you have any further queries, please let us know how we can assist. .