New code for Stamp Duty Land Tax first time buyer rate

From 14 June 2010, the new code 32 for the Stamp Duty Land Tax (SDLT) first time buyer rate relief will come into force. 

First time buyers can apply for relief if all of the following apply:

- the effective date is on or after 25 March 2010 and before 25 March 2012
- the consideration given is £250,000 or less
- the buyer tends to live in the property and it will be their only or main home
- they have not previously owned property or land either in the UK or anywhere else in the world, including property bought with anyone else

The threshold for qualifying first-time buyers is set at £250,000. 

The relief does not apply in the following circumstances:

- non-residential or mixed-use property
- leasehold property with a lease of less than 21 years
- SDLT payable on rent for leasehold properties (relief applies only to the premium)
- properties that are treated as linked transactions for SDLT purpose - unless it's to do with the same property, eg a separate lease on a garage
- shared ownership schemes where the payment is made in stages (but the relief can be claimed if a market value election is made)

For further details, please see the HMRC website