First-time buyer SDLT relief: how it works

First-time buyer SDLT relief can save you up to £5,000 on purchases between £300,000 and £500,000, if you qualify.

Who qualifies. You count as a first-time buyer if: - You (and every other owner, if buying jointly) have never owned a freehold or leasehold residential property anywhere in the world. - You intend to use the property as your main residence.

Inherited properties count. Properties owned abroad count. If your partner has ever owned property, even years before you met, you don't qualify for a joint FTB purchase.

What you pay. - Up to £300,000: 0% - £300,001 to £500,000: 5% on the portion above £300k - £500,001+: Relief is lost entirely. You pay standard rates.

That last point catches a lot of people. A first-time buyer at £499,000 pays £9,950 in SDLT. At £500,001, relief disappears and they pay around £15,000, a £5,050 cliff edge.

Claiming the relief. Your solicitor ticks the FTB box on your SDLT return when they file post-completion. You don't need to do anything separately.

Things to watch for: - Buying with a partner who's owned before? You'd usually split the purchase so the FTB partner's share qualifies. This is a tax-planning question, so talk to a specialist. - Shared ownership? Different rules apply. You can elect to pay SDLT on the full market value upfront, or on just the share you're buying (staircasing triggers SDLT later). - Right-to-buy from a council? Usually qualifies.