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LBTT: First-Time Buyers Relief

  • The Law Society of Scotland

First-time buyers are entitled to claim a new tax relief on the purchase of their first home. Land and Buildings Transaction Tax (LBTT) First-Time Buyer Relief raised the zero-tax threshold from £145,000 to £175,000 for first-time buyers who meet certain conditions. This means that around 80% of first-time buyers will not have to pay LBTT.

If you are planning to buy your first home, Claphams Solicitors can guide you through the conveyancing process, including your LBTT obligations, to make sure your purchase runs as smoothly as possible.

Qualifying for LBTT First Time Buyers Relief

To be eligible for LBTT relief you need to meet the following conditions:

  • You are acquiring a major interest in land;
  • You are planning to live on the land, which includes a dwelling;
  • You are a first-time buyer and the dwelling will be your only or main residence;
  • The transaction is not a linked transaction (unless the linked transaction is to acquire land that will be used as the garden, or to benefit the dwelling);
  • The transaction does not relate to an additional dwelling, such as a buy-to-let property or second home.

You don’t need to live in dwelling straight away if, for example, you are planning to carry out structural work or repairs, but you need a clear intention to occupy it once the works are complete.

If you are buying a house with someone else, you can only claim the relief if all of you meet all the relevant conditions. If any of the conditions are not met by any one of the buyers, the relief will not be available.

Who is a first-time buyer?

A first-time buyer is a person who does not own, and has not previously owned, a dwelling either in Scotland, the UK, or anywhere else in the world.

If an individual is, or was, a beneficiary under a trust that gives them a relevant interest in a dwelling, they will be treated as owning that dwelling for the purposes of first-time buyer relief. Dwellings that have been gifted or inherited are also taken in to account.

How much LBTT relief is available?

If you are a first-time buyer who is buying a property worth £175,000 or less, you will not have to pay any LBTT. If the property you are buying is worth more than £175,000 you can claim relief on the portion of the price that falls below the threshold. This means that all eligible first-time buyers will benefit from LBTT relief of up to £600.

Contact our Residential Conveyancing Solicitors in Clarkston, Newton Mearns, Giffnock, Netherlee, Eaglesham, Carmunnock, Stewarton & Southside Glasgow 

When you buy your first home, Claphams Solicitors will support you through every stage, from negotiating the purchase price right through to notifying the Land Registry that you are the new owner. Our experienced solicitors receive consistently positive reviews and we can deliver an excellent conveyancing service for you too. 

Contact our experienced solicitors now on 0141 620 0800 or make an online enquiry.  

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