First-Time Buyer Stamp Duty Relief Explained
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First-time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the price is above £500,000 the relief is lost completely and standard rates apply to the whole price.
Example: a £425,000 first home costs 5% × £125,000 = £6,250, against £11,250 at standard rates.
Want your own figure? Use our stamp duty calculator for England and Northern Ireland.
First-time buyer relief is a reduced set of Stamp Duty Land Tax (SDLT) rates for people buying their first home in England or Northern Ireland. The figures here are the rates GOV.UK lists for purchases from 1 April 2025 (GOV.UK: residential property rates).
The relief in one table
| Portion of the price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price above £500,000 | No relief: standard rates on the whole price |
Who counts as a first-time buyer
- You, and everyone you are buying with, have never owned a residential property anywhere in the world, including one you inherited or owned through a trust.
- You intend to live in the property as your main home.
- If a joint buyer has owned a home before, the relief cannot be claimed for the purchase, even if the other buyer is a first-time buyer.
These conditions are summarised from GOV.UK; check the full rules there or with your conveyancer.
Worked examples
| Price | First-time buyer SDLT | Standard SDLT | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £425,000 | £6,250 | £11,250 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £510,000 | £15,500 (no relief) | £15,500 | £0 |
From £300,000 to £500,000 the saving is a flat £5,000, because both sets of rates charge 5% on that slice and the difference sits entirely in the first £300,000.
The £500,000 cliff edge
Relief does not taper. At £500,000 a first-time buyer pays £10,000; at £510,000 they pay £15,500. That £10,000 rise in price adds £5,500 of tax. If a purchase is close to £500,000, it is worth checking whether anything in the price (for example separately agreed furniture at a fair value) is genuinely not part of the land and buildings. Ask your conveyancer; HMRC can challenge values that are not realistic.
Surcharges still apply
A first-time buyer who is not UK resident for SDLT purposes usually pays the 2% non-resident surcharge on top of the relief rates. On a £300,000 first home that is 2% of the whole price, so £6,000 instead of £0.
Check your own figure
Pick "first-time buyer" in the Talreon UK stamp duty calculator to see the band-by-band breakdown for your price.
Frequently asked questions
How much stamp duty does a first-time buyer pay?
Nothing on the first £300,000 and 5% on the portion from £300,001 to £500,000, so at most £10,000. Above £500,000 the relief is lost and standard rates apply.
What happens if a first-time buyer pays more than £500,000?
The relief stops completely. A £510,000 home costs £15,500 at standard rates, compared with £10,000 at £500,000.
Can we claim relief if only one of us is a first-time buyer?
No. Everyone buying must be a first-time buyer for the relief to apply.
Does first-time buyer relief apply in Scotland or Wales?
No. Scotland (LBTT) and Wales (LTT) have their own taxes and rules.
Sources
Related tools
- UK stamp duty calculator — band-by-band SDLT for any price.
- Mortgage calculator — monthly repayment on the loan.
- ISA savings calculator — saving towards a deposit.
Related guides
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