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 SDLT relief for first-time buyers is due to come to an end on 24 March 2012
Since 25 March 2010 First-time buyers of residential property have been entitled to relief (exemption) from paying Stamp Duty Land Tax on residential property purchases providing they meet all of the following criteria:-
the price paid for the property is £250,000 or less
the purchaser(s) intends to live in the property as their only or main home
the purchaser (or any one of them, if more than one) has not previously owned property or land either in the UK or anywhere else in the world - including property bought with anyone else
Effectively this has meant that since 25 March 2010 the threshold for qualifying first-time buyers of residential property has been £250,000. It has been estimated that nine out of ten people buying their first home since 25 March 2010 have not be liable to pay Stamp Duty Land Tax as a result of this relief.
The relief was introduced, by Alistair Darling in his last budget as Chancellor in March 2010, in an attempt to assist first-time buyers get a foot on the first rung of the property ladder by offering them a saving of up to £2,500. In that regard it has been a success: unfortunately for Mr. Darling it did not prove to be enough of a vote winner to reverse the fortunes of his party in the May 2010 election!
However, like all good things SDLT relief for first-time buyers is coming to an end. The concession comes to an end on 24th March 2012. In other words, if you are a qualifying first-time buyer your purchase transaction must be completed on or before this date for the relief to apply. As 24th March 2012 falls on a Saturday eligible buyers will benefit from the relief provided that they complete their purchase transaction on or before Friday 23 March 2012.
For many home buyers Stamp Duty Land Tax is the largest add on cost, so this tax break worth up to £2,500 is not to be sniffed at.
SDLT on residential land or property applicable to 24 March 2012
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Purchase Price
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SDLT rate
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SDLT rate for first-time buyers
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Up to £125,000
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Zero
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Zero
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Over £125,000 to £250,000
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1%
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Zero
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Over £250,000 to £500,000
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3%
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3%
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Over £500,000 to £1 million
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4%
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4%
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Over £1 million
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5%
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5%
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