Read the original guidance here:
HMRC SDLT: SDLTM29845 – Definition of a first-time buyer FA03/SCH6ZA/PARA6

Definition of a First-Time Buyer

To qualify as a first-time buyer in the context of the Stamp Duty Land Tax (SDLT), a person must not have previously owned, either alone or with others, a major interest in any residential property or comparable interest in land anywhere in the world. This rule applies regardless of how valuable that interest may be.

What Counts as Ownership?

– Ownership includes situations where a property was received as a gift, inherited, or acquired through a financial institution acting on behalf of someone through an alternative finance scheme.
– If you only acquired a leasehold interest of less than 21 years, this does not count against you for the first-time buyer status.

Joint Purchases

If a property is bought by multiple people, every person involved must meet the criteria mentioned above. For example:

– If person A buys a part share of a property from person B, they both become co-owners. In this case, neither A nor B would be seen as a first-time buyer since both are now considered purchasers.

Civil Partnerships and Marriages

When it comes to purchases made by one partner in a marriage or civil partnership, only the buyer’s history is important. You do not need to check if the non-buying spouse or partner has owned any previous property. However, this is different when assessing whether higher rates of SDLT would apply.

Non-Residential Properties

Purchasing non-residential properties or properties that are a mix of residential and non-residential does not disqualify you from being seen as a first-time buyer.

– For example, if someone buys a commercial shop or an office, that purchase does not affect their status as a first-time buyer.
– If at a later time, a dwelling is built on or adapted from that non-residential property, this also will not disqualify them.

However, prior ownership of a mixed property that included a major interest in a dwelling will impact first-time buyer status.

Understanding Mixed Ownership

To clarify:

– If you previously owned a share in a dwelling, you cannot claim first-time buyer status.
– If you owned property that was solely non-residential, you could still be seen as a first-time buyer.

Noteworthy Scenarios

There are cases where the previous acquisition of property through a trust or settlement does affect whether you are considered a first-time buyer. For more details on these specific situations, you can refer to how previous acquisitions by trusts or settlements impact first-time buyer status in SDLTM29855 to SDLTM29861.