First-Time Buyer or Not? How Compass Helped One Client Avoid a Costly Mistake
March 7, 2025
Buying a home is one of the biggest financial decisions a person can make, and understanding Stamp Duty Land Tax (SDLT) is a crucial part of the process. Unfortunately, misconceptions about First-Time Buyer Relief can lead to costly errors.
One of our recent clients found himself in this exact situation—uncertain about whether he qualified for relief due to owning property outside the UK. Without expert guidance, he could have mistakenly underpaid SDLT and faced an unexpected tax bill later.
Thankfully, SDLT Compass provided the clarity he needed.
The Client’s Dilemma
Our client was purchasing his first home in the UK but wasn’t sure if he qualified for First-Time Buyer Relief. He had read conflicting information and needed expert advice on whether his overseas property ownership would affect his SDLT liability.
Many assume this relief applies only to UK properties, but in reality, it considers global property ownership. If a buyer owns residential property anywhere in the world, they do not qualify as a first-time buyer.
This was a crucial distinction—one that our team helped him understand before it was too late.
How Compass made the difference
After speaking with our expert team, the client quickly discovered that:
❌ He was not eligible for First-Time Buyer Relief due to his overseas property.
❌ He also had to pay the higher rate of SDLT (an additional 3%) because he already owned another residential property.
This was a huge revelation—without SDLT Compass, he might have mistakenly claimed relief and later been hit with a hefty bill from HMRC, including penalties and interest.
The Outcome: Clarity, Confidence, and Compliance
Thanks to our guidance, the client was able to:
✅ Understand his true SDLT liability—no assumptions, no errors.
✅ Avoid a costly mistake that could have resulted in penalties from HMRC.
✅ Move forward with confidence, knowing exactly how much tax he owed.
Why getting SDLT right matters
SDLT rules can be complex, and making incorrect assumptions can lead to serious financial consequences. Whether you're a first-time buyer, purchasing a second home, or dealing with shared ownership, understanding the nuances of SDLT is essential.
This is why Compass exists—to ensure buyers pay the correct amount of tax, avoiding costly errors and unnecessary stress.
If you're unsure about your SDLT liability, don’t guess—get clarity. Let Compass guide you to the right tax outcome, just like we did for this client.