First Time Buyers and Stamp Duty Land Tax

Time is running out for those buyers wishing to make use of the first time buyer relief from stamp duty land tax.

As it stands first time buyers can benefit from relief when buying properties worth up to £250,000.00.  This can result in savings of up to £2,500 which can come in useful when moving into a new home!

This relief has been in place since March 2010 however any buyers wishing to make use of the relief must do so by 25th March 2012.  HMRC state that the effective date must be on or before this date.

The effective date of the transaction is usually the completion date.  But it can be earlier if the contract is 'substantially performed' before the completion date.  Examples of when a contract would be substantially performed include:

• the purchaser being entitled to take possession of the property
• the first payment of rent
• subletting
• payment of at least 90 per cent of the consideration

Please contact a member of our conveyancing department who will be pleased to further advise any first time buyers on maximising their relief.