How does first-time buyer’s relief apply where there are linked transactions?

Does the first time buyer lose any relief if he pays a total of £158,000 for a house and garage which are held under separate titles?  We are having trouble with the SDLT which wants to charge £660.



It seems to me that first-time buyer’s relief should be available assuming that, if the transactions are linked, the garage is in the garden or grounds of the house or the interest being acquired benefits the dwelling, and that the other conditions are fulfilled.

The legislation (in paragraphs 1(5) and 1(6) Schedule 6ZA FA 2003) provides that four conditions must be fulfilled.  Condition four is that :

(a) the transaction is not linked to another land transaction, or
(b) the transaction is linked only to land transactions that are within sub-paragraph (6) of paragraph 1.

Paragraph 1(6) of Schedule 6ZA FA 2003 is in the following terms:

‘(6) A land transaction is within this sub-paragraph if the main subject-matter of the transaction consists of:
(a) an interest in land that is or forms part of the garden or grounds of the purchased dwelling, or
(b) an interest in or right over land that subsists for the benefit of:
(i) the purchased dwelling, or
(ii) land that is or forms part of the garden or grounds of the purchased dwelling.’

At the time of publication this response was correct however as tax legislation and practice change from time-to-time you should take specific advice before taking any action.

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