Read the original guidance here:
HMRC SDLT: SDLTM29831 – Conditions for claiming the relief – First-time buyers intending to occupy the dwelling as their only or main residence FA03/SCH6ZA/PARA1(4)

Guidance on Claiming Relief for First-Time Buyers

Overview of Relief

Relief is a financial benefit designed for first-time buyers who plan to live in the property they are purchasing as their main home. To qualify for this relief, specific conditions must be met.

Who Can Claim Relief?

– Relief is available only to individuals.
– If any buyer is a company, the relief does not apply, as companies are not classified as individuals.
– Every buyer involved in the purchase must be a first-time buyer. For more details on who qualifies as a first-time buyer, refer to SDLTM29845 – Definition of a first-time buyer.

Requirement to Occupy

– All buyers must intend to live in the property as their only or main home.
– If someone involved in the purchase has previously owned a home, relief cannot be claimed.

Determining Main Residence

– An individual who lives in just one dwelling is considered to have that dwelling as their only or main home.
– In situations where a first-time buyer continues living in a different property after buying a new one, various factors must be considered to establish their intention regarding the new property.

Example Situations

1. Continuing to Rent: Suppose a first-time buyer purchases a new home but also rents another property. If they intend to make the new home their main residence once it is ready to move into, this intention can qualify them for relief.

2. Renovation Plans: If a buyer plans to renovate their newly purchased dwelling before moving in, it is still possible to claim relief as long as there is an evident intention to eventually live there.

Timing of Occupancy

– It is not mandatory for the buyer to move into the property right after the purchase.
– At the time the property is bought, there must be a definite intention to use it as their main home.
– If circumstances arise that make it challenging to occupy the property immediately, this does not prevent eligibility for relief.

Factors to Consider

When assessing someone’s intention to occupy the property, the following factors could be relevant:
– The buyer’s current living arrangements.
– Any plans for renovation or improvement.
– The timeline for moving into the new home.
– The professionalism or personal circumstances that may affect when they can physically move in.

Importance of Clear Intention

It’s critical to document and communicate the intention to occupy the property as the main residence. Buyers should keep records of:
– Correspondence related to renovation plans.
– Evidence of the intended move-in date, such as utility setup.
– Any commitments made to vacate the previous home if applicable.

Conclusion

Understanding these conditions for claiming relief is essential for first-time buyers. Being thorough in establishing and demonstrating the intention to use the bought property as the main residence can greatly impact eligibility for assistance.