Malcolm Finney outlines the rules of first-time buyer relief from stamp duty land tax.
Stamp duty land tax (SDLT) is a tax charged on the acquisition of land/buildings in the UK, whether by a UK or non-UK resident. Currently, on an acquisition by an individual of residential property (as opposed to commercial or mixed-use property), the SDLT rates vary between 0% and 15%, or between 3% and 18% for those acquiring a second residential property, for example a buy-to-let.
First-time buyer relief
With a view to helping first time buyers, FA 2018 introduced the so-called ‘first-time buyer relief’ (FTBR). FTBR provides for a reduced rate of SDLT to apply on a purchase of residential property by a first-time buyer (as defined – see below) where the purchase – or completion - is effected on or after 22 November
