There were two main changes to SDLT announced in the Budget:

for first-time buyers there is nil rate up to £250,000 (provided the buyer intends to live in the residential property). This relief is limited to a two-year period from 25 March 2010. However, there is still some uncertainty as to how the definitions will be applied; a first-time buyer is someone who has not previously made a ‘relevant acquisition of a major interest in land’ (which includes non-UK land), and that is largely defined as being a freehold interest, or a leasehold interest with at least 21 years of the terms to run. Whether the current definition will prove workable remains to be seen;

there will be a new 5% rate for purchasers of residential property where the consideration exceeds £1m (but this will only apply to acquisitions completed on or after 6 April 2011).

Do not forget that extensions were made to the SDLT disclosure regime after 1 April. One of these changes is that anyone receiving a scheme reference number (SRN) must notify HMRC of the number. To do this, use Form AAG4, which should be submitted within 30 days of entering into the first land transaction connected with this scheme (you must use the form – any other form of disclosure will not be valid).