28/12/2025
First-time buyer SDLT relief: why married couples can lose it (even if one spouse is a “true” first-time buyer)
First-time buyer’s relief (FTBR) can reduce SDLT on a first home purchase, but it only applies if the transaction is not caught by the higher rates for additional dwellings.
Here’s a common scenario that catches people out:
Spouse A owns the current home outright.
The couple plan to buy a new property to live in as their main residence.
First-time buyer SDLT relief: why married couples can still miss out
First-time buyer’s relief (FTBR) can reduce SDLT on a first home purchase, but it is only available if the purchase is not treated as a transaction subject to the higher rates for additional dwellings.
Here’s a common fact pattern:
Spouse A owns the current home outright.
The couple plan to buy a new property and live in it as their main residence.
The existing home will be kept and rented out (not sold).
Spouse B has never owned a property and assumes FTBR will apply.
The key issue: higher rates override FTBR
If the new purchase is treated as an additional dwelling for SDLT purposes, the higher rates apply—and FTBR cannot be claimed, even if one buyer is genuinely a first-time buyer.
For joint purchases, a transaction can fall into the higher rates where:
there are two (or more) purchasers and at least one already owns a major interest in another dwelling; and/or
the new home is not a replacement of the only or main residence (which, in practice, generally requires disposing of the previous main home within the relevant rules).
In the example above, because the existing home is retained and becomes a rental, the new purchase is typically treated as an additional dwelling. Result: no FTBR.
“What if the first-time buyer buys alone?”
Some clients assume the non-owner spouse can purchase in their sole name to access FTBR. Be careful: SDLT rules can treat spouses/civil partners living together as one economic unit for the higher-rate test. If it would have been a higher-rate transaction had they bought jointly, it may still be treated that way when one spouse buys alone—so FTBR can still be unavailable.
21/12/2025
VAT on food: why “warm” can become 20%
Food VAT is a minefield: the rules are packed with exceptions, and small factual details (how you display, describe, and serve an item) can flip the VAT rate.
The key point
Most supplies are 20% by default. Food can be zero-rated, but heated food often isn’t.
“Heated food” is typically 20% if it is:
hot at the point of sale, and/or
kept hot (heated cabinets, heat lamps, heat-retaining displays), and/or
presented/marketed as intended to be eaten hot.
The common grey area
Products cooked and then sold while cooling down (e.g., freshly baked goods or cooked items sold warm) are where businesses get caught out. VAT can hinge on:
whether warmth is incidental or deliberately maintained
what your signage, packaging, shelf placement, and staff prompts suggest
whether the catering rules apply (eat-in style service, seating, condiments/cutlery, etc.)
Why it matters
If HMRC later says it should have been 20%, the risk is not just higher prices going forward—it can mean backdated VAT, interest, and penalties.
What to do
Review any hot/warm lines and how they’re held and sold
Check marketing language: “hot”, “ready to eat”, “fresh from…” can matter
Document your process and intent (e.g., “not kept hot”)
Get advice before launching borderline products
Consider an HMRC non-statutory ruling for higher-risk items (helpful, not guaranteed)
If you sell food that’s warm at sale, a quick VAT health-check now can prevent an expensive correction later.
13/12/2025
Do I need to file a self assessment tax return?
If you’re feeling unsure about Self Assessment this year, you’re not alone. A lot of people only start thinking about it when life changes: a new side hustle, a first dividend payment, a bit of rental income, or selling something for a profit. It can feel confusing, and the worry is usually the same: “Do I actually need to file a tax return, or am I creating extra admin for myself?”
Here’s a simple way to sense-check it. You may need to register and file a UK Self Assessment return if you earned £1,000 or more (gross) from self-employment, were a partner in a partnership, received untaxed income (like rental income, foreign income, interest or dividends), made capital gains, or if you claim Child Benefit and you or your partner’s income is over £60,000 and it hasn’t already been collected through your PAYE tax code.
Some people also choose to file to claim tax reliefs (for example, Gift Aid or Marriage Allowance), pay voluntary National Insurance to protect their State Pension record, or to double-check PAYE and potentially claim a refund if too much tax was taken.
If it looks like you need to file, don’t panic. The next step is simply to notify HMRC by 5 October after the end of the relevant tax year, so you can get a UTR and file online.
And if you’re still unsure, HMRC’s online checker can help—if your situation feels complicated, getting advice early can save a lot of stress later.
Sevaj Accountancy & Tax Services
Accountants & Business Advisors, people-focused firm.
