First Time Buyers Relief from SDLT

The First Time Buyers Relief on Stamp Duty Land Tax (SDLT) was introduced in November 2017. The introduction of this new relief saw the abolishment of SDLT for first-time buyers making a purchase of up to £300,000. This limit has been temporarily increased by £125,000 to £425,000 for the period from 23 September 2022 – 31 March 2025.

There has also been a corresponding temporary increase, until 31 March 2025, in the nil-rate threshold to £425,000 (£300,000 prior to 23 September 2022) for first-time buyers of properties costing up to £625,000 (£500,000 prior to 23 September 2022). There is no relief available for first-time buyers spending more than £625,000 on a property.

These increases were initially announced as a permanent increase by the then Chancellor, Kwasi Kwarteng, on 23 September 2022 but were made temporary by the current Chancellor Jeremy Hunt, as part of the Autumn Statement measures on 17 November 2022. Legislation contained in the Stamp Duty Land Tax (Reduction) Bill will amend Part 4 of the Finance Act 2003 to legislate for this temporary change.

There are a number of requirements that must be met in order to qualify for the relief. The relief is only available for those purchasing a house for the first time. The purchaser can never have previously owned any share of a property in the UK or worldwide. The qualifying criteria are extended to both partners when buying a house jointly.

SDLT applies in England and Northern Ireland only. Land transactions in Scotland are subject to the Land and Buildings Transaction Tax (LBTT) and land transactions in Wales are subject to the Welsh Land Transaction Tax (LTT). Any changes to the LBTT or LTT would be announced separately.