The Chancellor Alistair Darling has made a significant change to Stamp Duty Land Tax for first-time buyers. This move has been made to help thousands of first-time buyers get on the property ladder. Stamp Duty is currently charged at 1 per cent of the purchase price on residential properties costing between £125,000 and £250,000. However, as of the 25th of March 2010 first-time buyers are now exempt from this band. Therefore providing the consideration is less than £250,000 and there is a first-time buyer, there is no Stamp Duty to pay. This Stamp Duty relief is only available for two years until the 25th of March 2012.

The following conditions will need to be met in order to qualify for this relief:
• The property must have been purchased on or after 25th of March 2010 this relief cannot apply retrospectively.
• The property being purchased must not exceed the purchase price of £250,000.
• The property being purchased must be wholly residential and the acquisition must be of a major interest in the land (i.e. freehold or leasehold interest of more than 21 years).
• The purchaser or all the purchasers must be first-time buyers and must not have already acquired a freehold or a leasehold interest of more than 21 years in a residential property.
• The purchaser or purchasers must intend to occupy the property being purchased as their main residence as a result of which partnerships or corporate bodies cannot qualify for this relief.

This relief will be claimed on a Land Transaction Return Form by your solicitor and you will have to confirm in writing you are a first-time buyer. The Treasury has said that first-time buyer checks will be done through HM Revenue & Customs as part of its usual processes and that there are severe penalties for tax fraud. If you require any further information or guidance please visit http://www.hmrc.gov.uk/budget2010/sdlt (The contents of this article are for general information purposes only and should not be taken as legal advice. We do not accept responsibility for any loss suffered as a result of any acts or omissions taken as a result of this article)