30 SECOND TAX SPEED READ - RESIDENTIAL STAMP DUTY LAND TAX: FIRST TIME BUYERS’ RELIEF
The Chancellor has announced that the relief will be extended to all first-time buyers of shared ownership properties. Previously such buyers could only benefit from FTBR if they elected to pay SDLT on the market value of the property.
If they opted to pay SDLT on the alternative method (i.e. the value of the share being purchased and the rent payable under the lease element) FTBR was not available to them. That’s now changed, so first-time buyers can claim the relief if they opt to pay on the value of the share purchased and rent, where value of the property is less than £500,000.
This change applies from the Budget date and importantly also applies retrospectively for properties with effective dates on/after 22 November 2017.
Property Lawyers should review their transactions undertaken since 22 November 2017 and take tax advice on obtaining SDLT refunds for their clients where appropriate.