HMRC may owe you a Stamp Duty Refund if you are a first time buyer.
If this was your first property purchase intended for use as your primary residence, you may be eligible to receive a refund for the stamp duty paid during the transaction.
Stamp Duty refund for first time buyers
To be deemed a first-time buyer, it is necessary for the individual to purchase a property with the explicit purpose of using it as their primary residence. Furthermore, the transaction must represent their initial experience in buying a property, regardless of its geographical location.
It is important to note that individuals who have acquired a property through inheritance or as a gift, or those who intend to lease the property for investment purposes, will not qualify for first-time buyers’ stamp duty relief. This relief is specifically designed to assist individuals who are taking their first steps onto the property ladder.
In cases where a property is being purchased jointly with another person, it is imperative that both individuals meet the definition of a first-time buyer in order to benefit from the relief. If either person has previously owned a house jointly with a partner or spouse, they will not be eligible for the relief. This requirement ensures that the relief is targeted towards individuals who are genuinely entering the property market for the first time.
It is worth mentioning that if the purchase price of a first home exceeds £625,000, the first-time buyer stamp duty relief is not available. In such cases, the regular stamp duty rates will be applicable. However, it is noteworthy that starting from April 1, 2025, the threshold will decrease to £500,000, and the nil-rate band for first-time buyers will return to £300,000. These adjustments aim to support first-time buyers by providing them with additional financial flexibility when purchasing a property.
In summary, the criteria for qualifying as a first-time buyer include purchasing a property for personal residential use, it being the first property transaction for the individual, and not having previously inherited or been gifted a property. Additionally, joint buyers must both meet the definition of a first-time buyer, and there are specific thresholds and adjustments in place for stamp duty rates depending on the purchase price and the date of purchase.
If you are a first time buyer and have purchased a residential property, we may be able to assist you in reclaiming a stamp duty refund.
Stamp Duty Land Tax
You may be eligible to reclaim Stamp Duty Land Tax (SDLT).
Stamp Duty Refunds Process
Eligibility Check
To claim, you must have bought a property or 2nd home within the last 4 years which had defects/issues.
Send Documentation
We will ask you to send us your SDLT documentation and any supporting evidence to proceed with your claim
Claim Submission
We’ll collect information from you about your property, and assess the eligibility of your claim.
Receive your Stamp Duty refund
On the successful completion of your case you will receive your refund from HMRC
To qualify for an SDLT refund, your property must meet the following criteria:
- The property must be a buy-to-let or second home
- The property must have been purchased within the last four years.
- The property must have had qualifying defects at the time of purchase.
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