Guide to Claiming First-Time Buyer Relief on Land Transaction Returns

Claiming SDLT First-Time Buyer Relief on the Return

First-time buyer relief for Stamp Duty Land Tax is not given automatically. It must be claimed in the original SDLT return or by amending the return later. In most cases, the key step is entering relief code 32, while approved shared ownership purchases need extra care because the SDLT figures should first be calculated using HMRC’s Stamp Taxes calculator.

• The rule is about how to claim the relief through the SDLT filing process, not about whether the buyer qualifies.
• HMRC says the claim must be made in the original land transaction return or in an amendment to that return.
• No special supporting information is required, but relief code 32 must be entered in the reliefs field.
• For standard online returns, entering the correct code should allow the system to apply the first-time buyer SDLT rates automatically.
• For approved shared ownership schemes, HMRC says the SDLT must first be worked out using its Stamp Taxes calculator, then the figures entered into questions 1.14, 1.24 and 1.25, with code 32 still included.
• A common risk is a filing error: a buyer may qualify for relief but still pay the wrong SDLT if the claim is not made correctly.

Scroll down for the full analysis.

How to claim SDLT first-time buyer relief on the return

This page explains the practical step of claiming first-time buyer relief for Stamp Duty Land Tax. The key point is simple: the relief is not automatic. It must be claimed in the SDLT return, or by amending that return. If the claim is not made correctly, the tax calculation may not reflect the relief.

What this rule is about

The source material deals with the mechanics of claiming first-time buyer relief. It is not mainly about whether a buyer qualifies for the relief. Instead, it explains how the claim must be made procedurally through the SDLT filing process.

This matters because SDLT reliefs generally need to be claimed in the prescribed way. Even where a buyer appears to meet the conditions for first-time buyer relief, HMRC will expect the return to show that the relief is being claimed.

What the official source says

HMRC’s manual says that first-time buyer relief must be claimed either:

• in the original land transaction return, or
• in an amendment to that return.

HMRC also says that no special supporting information is required with the claim. However, the return must include relief code 32 in the reliefs field.

If the return is completed and filed online, the online system will calculate the SDLT due using the special first-time buyer rates.

Where the purchase is through an approved shared ownership scheme, HMRC says the buyer should use HMRC’s Stamp Taxes calculator to work out the SDLT liability. The figures from that calculator should then be used to complete questions 1.14, 1.24 and 1.25 on the online SDLT return. Relief code 32 must still be entered in the reliefs field.

What this means in practice

The practical message is that claiming the relief is an active step in the SDLT return process.

If you are filing online and the transaction is a standard one, entering the correct relief code should allow the system to apply the first-time buyer rates automatically.

If the return has already been submitted without the relief being claimed, HMRC’s guidance indicates that the route is to amend the return and include the claim there.

The source also highlights that approved shared ownership purchases need extra care. In those cases, the online return may not simply calculate the right result without the figures being worked out first. HMRC’s instruction is to use its Stamp Taxes calculator and then transfer those figures into the relevant boxes on the return.

How to analyse it

A sensible way to approach this is to separate two questions.

First, is the buyer entitled to first-time buyer relief at all? The source material here does not set out the qualifying conditions, so that needs to be checked separately.

Second, if the buyer is entitled, has the claim been made correctly in the SDLT return?

For the second question, the main points to check are:

• Was the claim included in the original land transaction return?
• If not, has the return been amended to include the claim?
• Was code 32 entered in the reliefs field?
• If the purchase was through an approved shared ownership scheme, were the SDLT figures first worked out using HMRC’s Stamp Taxes calculator?
• Were the calculator figures then entered into questions 1.14, 1.24 and 1.25 on the online return?

For conveyancers and taxpayers, the risk is often not a misunderstanding of the relief itself, but a filing error. A buyer may qualify in principle but still end up with the wrong SDLT shown on the return if the claim is not entered in the way HMRC expects.

Example

Illustration: a qualifying first-time buyer purchases a dwelling and an SDLT return is submitted online. If code 32 is entered in the reliefs field, the online system should calculate SDLT using the first-time buyer rates.

If the same return is submitted without code 32, the relief may not be applied. In that case, the buyer would need to correct matters by amending the return and making the claim there.

Illustration: a buyer purchases through an approved shared ownership scheme and is claiming first-time buyer relief. HMRC’s guidance is not simply to rely on the online return alone. Instead, the SDLT liability should first be worked out using HMRC’s Stamp Taxes calculator, and the resulting figures should then be entered into the specified boxes on the online return, with code 32 included in the reliefs field.

Why this can be difficult in practice

The main difficulty is that entitlement to relief and the process for claiming it are separate issues. People often focus on whether the buyer is a first-time buyer, but the source material here is concerned with the filing mechanics.

Shared ownership transactions can be especially awkward because they require a more manual approach. HMRC’s guidance specifically directs users to calculate the liability outside the return and then input the figures into particular fields. That creates more scope for error than a straightforward online calculation.

Another practical issue is that HMRC’s manual is guidance, not the legislation itself. It is useful for understanding HMRC’s expected process, but it does not replace the underlying legal rules on entitlement to relief or on amendment of returns.

Key takeaways

• First-time buyer relief must be claimed in the SDLT return or in an amendment to that return.
• The claim does not need special supporting information, but relief code 32 must be entered in the return.
• Approved shared ownership purchases need particular care because HMRC says the SDLT figures should first be worked out using its calculator and then entered into the return.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guide to Claiming First-Time Buyer Relief on Land Transaction Returns

View all HMRC SDLT Guidance Pages Here