A remortgage is where there is already a mortgage on the property that will be paid off and replaced by another mortgage.

A transfer of equity is where the legal process of changing the ownership (title deeds) of a property by adding or removing one or more people, while at least one of the original owners remains on the title. Unlike a standard property sale, it does not involve selling the house to a new party, but rather shifting the ownership structure and the associated "equity", the portion of the home owned outright after deducting any mortgage.

It is commonly used to add a spouse/partner after marriage, remove a partner during a divorce/separation, or to buy out a co-owner.

Choose ‘Freehold’ if it is a freehold transaction or you are acquiring an existing lease.

Choose ‘leasehold’ if it is a new lease.

Select Linked transaction if you are purchasing multiple transactions (such as a house and separate plot of land) sold by the same vendor to the same purchaser (you) however each transaction has a separate contract.

Select Islamic finance if you are purchasing using an Islamic mortgage scheme to enable you to purchase a property whilst still complying with Sharia Law.

Select Shared ownership scheme if you are purchasing using the government-backed part-buy / part-rent scheme that allows first-time buyers to get onto the property ladder.

Select Right to Buy if the property will be your only/main home and be self-contained. You must be a secure tenant with a minimum of three years with a public sector landlord.

Select New Build if it is to be bought directly from a developer. It must have been recently constructed, converted, or refurbished—typically within the last two years—that has never been lived in or sold before.

Select Additional bare land / grounds if the purchase will include extra parcels of land that have no buildings, significant structures, or developed infrastructure. This land, which may consist of greenfield sites, paddocks, woodland, or adjacent garden plots, is often purchased to provide a larger garden, a privacy buffer, or potential development opportunities.

Select Trusts if the purchase will have a legal arrangement separating legal ownership (trustees) from beneficial ownership (beneficiaries).

Select Wills / inheritance if the property being purchased is being sold by the executor or administrator of a decreased person’s estate. When wills or inheritance are involved in purchasing a property, the process typically falls under a "probate sale".

Select Divorce if you are buying a property during divorce that is yet to be finalised. Purchasing can be  risky, as assets acquired before a final court order are typically considered marital property, subject to division.

If any of the following are involved in your purchase please provide Trust documents for review using the upload functionality.

Declaration of Trust: A legally binding document used by tenants in common to outline specific ownership shares, deposit amounts, and mortgage responsibilities, preventing future disputes.

Bare Trust: Often used for minors, where the trustee holds the property for the beneficiary, who will eventually get the property.

Discretionary Trust: Offers maximum flexibility, allowing trustees to decide how property benefits (like income) are distributed among beneficiaries, popular for asset protection.

Property Trust Wills: Used in estate planning to allow a surviving partner to live in a property, while ensuring the home eventually passes to children, often shielding it from care costs.

In order to count as a first-time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world.

Yes must be selected if any purchaser has ever bought a property; inherited a property; or are a beneficiary of a trust that owns a property.

If you are unsure please provide an explanation of your circumstance in the additional details section, or ask our webchat.

When You May Not Qualify for First Time Buyer Relief

First Time Buyer relief is only available if all buyers meet the criteria and the property will be used as a main residence.

You can lose your eligibility for First Time Buyer relief if you have owned, or are treated as owning, a property before even if it wasn’t in a straightforward way. This includes:

1. Inherited property

If you’ve ever inherited a property (or a share in one), HMRC treats this as previous ownership even if you never lived in it or later sold it.

2. Property held in a trust

If you have a beneficial interest in a property through a trust, this may count as ownership, depending on the structure of the trust.

3. Rights to use property (usufructs)

In some cases, having a legal right to use or benefit from a property (even if you don’t legally own it) can be treated as an interest in that property.

4. Owning property outside the UK

If you have owned a residential property anywhere in the world, not just in the UK, you are unlikely to qualify as a first-time buyer.

5. Your spouse owns (or has owned) property

If your spouse or civil partner owns, or has previously owned, a residential property, this can affect your eligibility even if the property is not in your name.

6. Buying with a spouse who is not a first-time buyer

If you are purchasing jointly with a spouse or civil partner who has owned property before, the relief will not apply to the purchase.

7. Buying with someone who won’t live in the property

If you’re buying jointly with someone who will not use the property as their main home (for example, a parent or investor), you may not qualify.

8. The property won’t be your main home

First Time Buyer relief only applies if you intend to live in the property as your main residence. If you’re buying it as a second home, rental, or investment, the relief won’t apply.

You are generally treated as a non-UK resident for SDLT purposes if you have spent fewer than 183 days in the UK during the 12 months before your purchase completes.

This rule applies to:

• Individuals buying property personally

• Companies and certain other entities (which are usually treated as non-UK resident by default unless specific conditions are met)

What this means in practice:

• The 2% surcharge is added to all the standard SDLT bands

• It applies to both freehold and leasehold purchases

• It can apply whether the property is your main home or an additional property

Important notes:

• Your residency status is tested at the point the purchase completes

In some cases, you may be able to claim a refund of the 2% surcharge if you go on to spend enough time in the UK (183 days or more) within a set period after the purchase

Owning two or more residential properties on the day of completion triggers a higher SDLT rate, generally 5% points above standard rates, because HMRC treats the purchase as an investment or second home rather than a primary residence replacement.

Why the Higher Rate Applies:

The "End of Day" Test: If at the end of the day of completion you own two or more residential properties (worth £40,000+ each) and have not replaced your main residence, the higher rate applies.

Failed Sale Timing: If your previous main home has not sold by the time you complete on the new one, you temporarily own two homes and pay the higher rate, though you may apply for a refund within 36 months of selling the old one.

Married Couples/Civil Partners: Rules treat spouses as one unit; if one partner owns a property and the other buys one, the higher rate applies.

Additional Property Definition: This applies to buy-to-let properties, holiday homes, and even properties bought on behalf of children under 18.

Company Purchases: Almost all residential purchases by companies are subject to this higher rate, regardless of how many they own.

Key Exceptions and Details:

Replacement of Main Residence: If you sell your previous main home on or before the day of completion, you do not pay the higher rate.

Small Properties: Properties worth less than £40,000 are excluded.

If your previous main residence has already been sold, so you are not selling and purchasing on the same day, then please provide further details such as the date of the previous sale in the additional information section. You can unlock this free text and upload section by selecting ‘Yes’ to the question ‘Is there any further relevant information which you would like to share with our tax team?’

A dwelling is defined as a building, or part of a building, used or suitable for use as a single dwelling, or in the process of being constructed or adapted for use as one. Additional dwellings can incur a higher rate of tax.

Does an Annexe count as an additional dwelling?

HMRC treats an annexe as a separate dwelling if it has:

• Its own kitchen

• Bathroom facilities

• Sleeping/living space

• Ability to be used independently (even if not legally separated)

However the most important rule for annexes is that higher rates DO NOT apply if:

• The annexe is worth ≤ 1/3 of the total property value

• AND it is within the same property (not a separate title typically)

So if you have an annexe that is valued at less that ⅓ of the total property value select ‘No’ for additional dwellings. If you have additional buildings that are valued at over ⅓ of the total value of the transaction then select Yes. please provide further details such as sale particulars in the additional information section. You can unlock this free text and upload section by selecting ‘Yes’ to the question ‘Is there any further relevant information which you would like to share with our tax team?’

If you select ‘yes’ then a free text and upload section of the form is unlocked. You only need to enter additional information if there is anything unusual about your transaction, or if there are documents that are relevant to your transaction. 

For example, if you are purchasing a single dwelling we do not need to see the sale particulars. However if you are buying additional parcels of land or perhaps have an annexe that is worth over one-third of the transaction price; then providing us sale particular details will accelerate our understanding of the transaction and ability to verify the correct amount of tax to be paid.