Boost for First Time Buyers?

25 March 2010

The Chancellor has announced a relief from Stamp Duty Land Tax (SDLT) for first time buyers, which it is hoped will give a boost to the housing market.

The Chancellor announced in his budget on 24th March 2010, that buyers of residential property at prices up to £250,000, where the purchaser, or all of the purchasers, are first time buyers, will not require to pay SDLT.

This new relief will be available for all residential purchases completing on or after 25th March 2010, and before 25th March 2012.

There are a number of conditions which would require to be complied with to qualify for the relief:

1. The property must be residential – commercial properties do not qualify.
2. The purchaser or purchasers must intend to occupy the property as their only or main residence. This would exclude purchases by companies, partnerships, etc.
3. The purchaser must not, either alone or with others, have previously purchased or acquired a “major interest” in a residential property, anywhere in the world!

This would also mean that any party who had, for example, inherited a property in the past would be prohibited from claiming this exemption, as they have acquired this "major interest".  Also, if you are purchasing a property with a partner, and either one of you does not qualify as a first time buyer, then the relief would not apply.

It is hoped that this relief will stimulate some further interest in the property market and will be of assistance to some first time buyers.
 

Should you wish to discuss any issues related to property purchase, please email our Conveyancing Department.