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HMRC SDLT: SDLTM29895 – Claiming the relief

SDLT29895 – Claiming the Relief

What is Stamp Duty Land Tax (SDLT) Relief?

Stamp Duty Land Tax (SDLT) relief is a reduction in the amount of tax that new property buyers might need to pay when purchasing their first home. This relief can significantly lower the financial burden for first-time buyers, making it easier for them to enter the property market.

Claiming the Relief

To claim this relief, you need to follow certain steps when you complete your land transaction return. The following points outline what you need to do:

• The relief must be requested either directly in the land transaction return or through an amendment to that return.
• For first-time buyers, there is no need to add extra documents or information when making this claim.
• You must enter code 32 into the designated reliefs field of the return. This code identifies the specific relief you are claiming.

Online Submissions

If you choose to complete and submit your return online, the system will automatically calculate the tax you owe. It takes into account the special lower rates that apply to first-time buyers. This feature ensures that you are not overcharged, making the process more transparent.

Using Shared Ownership Schemes

If you are buying a property through an approved shared ownership scheme, claiming relief works a bit differently:

• First, you should calculate your Stamp Duty Land Tax (SDLT) obligations using the HMRC Stamp Taxes calculator.
• Once you have your figures, use those to fill out specific sections of the online SDLT return.
• The figures from the calculator should be applied to questions 1.14, 1.24, and 1.25 of the SDLT return.
• Again, remember to enter code 32 in the reliefs field of the return to claim your entitlement.

Key Points to Remember

• Make sure to complete your return accurately: Enter code 32 for first-time buyer relief.
• Use the HMRC calculator for shared ownership schemes to ensure you’re paying the right amount of SDLT.
• Submitting your return online simplifies the process and ensures accurate calculations.

What if My Situation Changes?

If for any reason your circumstances change after you have submitted your return, you can amend the return to adjust for any changes in your claim. This involves:

• Revisiting your original land transaction return.
• Making the necessary changes to ensure everything is accurate.
• Including code 32 again if you are still eligible for first-time buyer relief.

Example Scenario

Let’s break this down with an example. Imagine a person named John who is purchasing his first home for £250,000. When completing his SDLT return:

• John enters code 32 in the reliefs field of the return, indicating he qualifies for first-time buyer relief.
• Since he is submitting the return online, the system automatically calculates the tax based on the reduced rates for first-time buyers.

If John were buying a property through a shared ownership scheme, he would:

• Use the HMRC Stamp Taxes calculator to determine his SDLT obligations.
• Input the calculated figures into questions 1.14, 1.24, and 1.25 on the online SDLT return.
• Once again, he would insert code 32 into the reliefs field.

Further Information and Resources

For more detailed guidance, explore the other pages provided by HMRC related to Stamp Duty Land Tax, especially if you need information catered to specific situations or ownership structures.

• Visit the HMRC website for up-to-date guidance and resources.
• Consult the local government offices or legal advisors for advice tailored to your personal situation.