HM Revenue and Customs Working Paper 12: Evaluating the Impact of Stamp Duty Land Tax First Time Buyer’s Relief
This paper details the empirical work conducted by HM Revenue and Customs analysts to evaluate the relief’s impact on affordability and value for money.
A temporary relief from Stamp Duty Land Tax (SDLT) for purchases of residential property up to £250,000 was introduced on 24 March 2010. The relief applies where the purchaser is a first time buyer and intends to occupy the property as their only or main home. It applied for transactions with an effective date (normally the date of completion) from 25 March 2010 to 24 March 2012.
The relief raised the threshold for first time buyers at which SDLT is paid from £125,001 to £250,001.
Non first time buyers have to pay a 1 per cent charge on the value of the property for purchases between £125,001 and £250,000.