First-Time Buyer Stamp Duty Relief: How Much Can You Save?

First-time buyers in England and Northern Ireland pay 0% Stamp Duty Land Tax on the first £300,000 of a property's price and 5% on the slice between £300,001 and £500,000 (HMRC, in force from 1 April 2025). The maximum saving against standard rates is £5,000, available on any property priced between £300,000 and £500,000. The temporary £425,000 threshold that ran from 23 September 2022 ended on 31 March 2025.

This guide explains exactly who qualifies for first-time buyer relief, how the £500,000 cliff edge works, and what the relief is worth at every price point from £200,000 to £550,000.

Quick summary

• Relief threshold: 0% on the first £300,000 (only if the property costs £500,000 or less)
• Maximum saving: £5,000 — available on properties between £300,000 and £500,000
• Hard cliff at £500,000: £500,001 loses the relief entirely
• Both buyers must be first-time buyers on a joint purchase
• Applies to England and Northern Ireland only (Scotland and Wales operate separate schemes)

What is first-time buyer stamp duty relief?

First-time buyer relief lifts the SDLT nil-rate band from £125,000 to £300,000 for eligible buyers, and applies a 5% rate (instead of the standard 2% and 5%) between £300,001 and £500,000. Above £500,000 the relief disappears entirely and the buyer pays standard rates from the first pound (HMRC guidance: Stamp Duty Land Tax: relief for first-time buyers).

Standard vs first-time buyer rates

Standard rates (home movers, from 1 April 2025):

• £0 – £125,000: 0%
• £125,001 – £250,000: 2%
• £250,001 – £925,000: 5%
• £925,001 – £1,500,000: 10%
• £1,500,001+: 12%

First-time buyer rates:

• £0 – £300,000: 0%
• £300,001 – £500,000: 5%
• £500,000+: no relief — standard rates apply from the first pound

How much can you save?

The relief is worth a flat £5,000 across the £300,000 to £500,000 band. Below £300,000 the saving is smaller (a home mover already pays little); above £500,000 the saving is zero.

Property price	Standard SDLT	FTB SDLT	Saving
£150,000	£500	£0	£500
£200,000	£1,500	£0	£1,500
£250,000	£2,500	£0	£2,500
£272,000	£3,600	£0	£3,600
£300,000	£5,000	£0	£5,000
£350,000	£7,500	£2,500	£5,000
£400,000	£10,000	£5,000	£5,000
£450,000	£12,500	£7,500	£5,000
£500,000	£15,000	£10,000	£5,000
£501,000	£15,050	£15,050	£0
£550,000	£17,500	£17,500	£0

Key insight: the saving is capped at £5,000 because the relief only operates inside the £0–£500,000 range. The £500,001 cliff edge is the single most expensive feature of the regime.

Calculate Your FTB Saving →

Am I eligible for FTB relief?

All four conditions must be met (HMRC guidance, in force from 1 April 2025).

Requirement 1: Never owned property

Neither buyer has ever owned residential property, anywhere in the world, including:

• Property in the UK
• Property abroad
• Inherited property (even a partial share)
• Property held in trust for your benefit
• Property given to you

Joint purchases: both buyers must be first-time buyers. If one party has previously owned property, the relief is lost in full.

Requirement 2: Property price £500,000 or less

The property must cost £500,000 or less. One penny over and the relief is lost in full.

Example of the cliff edge:

• £499,999: relief applies, SDLT = £9,999.95
• £500,001: no relief, SDLT = £15,050.05
• A £2 increase costs over £5,000 in extra tax

Negotiating below £500,000 is therefore worth far more than the price reduction itself.

Requirement 3: Intended as your main residence

The property must be your main home. Relief does not apply to:

• Buy-to-let properties
• Investment properties
• Holiday homes
• Properties you do not intend to live in

HMRC's main-residence test requires buyers to move in within a reasonable time after completion. Short delays for renovations are typically accepted; extended absences can trigger a relief clawback.

Requirement 4: Residential property only

Must be a residential home, not:

• Commercial property
• Mixed-use property (e.g. a flat above a shop)
• Land without a residential building

Common disqualifications

Previous ownership

Anyone who has previously owned property is disqualified, regardless of:

• How long ago the property was sold
• Whether the buyer ever lived there
• Whether only a share was owned
• Whether the property was overseas

Joint purchase with a previous owner

On a joint purchase, both buyers must qualify. A partner who previously owned property disqualifies the entire purchase.

Worked example:

• Buyer A: never owned property
• Buyer B: owned a flat from 2018 to 2020
• Joint purchase of £400,000 home: no FTB relief, SDLT = £10,000
• Same purchase in Buyer A's sole name: SDLT = £5,000 (FTB relief applies)
• Saving from sole-name purchase: £5,000, subject to Buyer A being able to qualify for the mortgage alone

Property over £500,000

No relief on any purchase above £500,000. The full standard rates apply from the first pound.

Buy-to-let or investment property

The property must be the buyer's main residence. A buy-to-let purchase by a first-time buyer pays standard rates plus the 5% additional-property surcharge.

Real examples: what you'll actually save

Example 1: £280,000 first home (Birmingham)

• First-time buyer, property £280,000
• FTB SDLT: £0 (within the £300,000 nil-rate band)
• Standard SDLT: £4,000 (0% on £125k + 2% on £125k + 5% on £30k = £2,500 + £1,500)
• Saving: £4,000

Example 2: £375,000 flat (London)

• First-time buyer, property £375,000
• First £300,000: 0% = £0
• Remaining £75,000: 5% = £3,750
• FTB SDLT: £3,750
• Standard SDLT: £8,750
• Saving: £5,000 (the maximum)

Example 3: £500,000 house (South East, at the cap)

• First-time buyer, property £500,000
• First £300,000: 0% = £0
• Remaining £200,000: 5% = £10,000
• FTB SDLT: £10,000
• Standard SDLT: £15,000
• Saving: £5,000 (still the maximum, last property eligible)

Example 4: £501,000 (just over the cap)

• First-time buyer, property £501,000
• FTB relief: none
• Standard SDLT: £0 + £2,500 + £12,550 = £15,050
• Saving: £0

Cost of crossing the £500,000 line: £5,000 versus the same buyer at £499,999.

Example 5: £350,000 (typical first-time buyer purchase)

• First-time buyer, property £350,000
• First £300,000: 0% = £0
• Remaining £50,000: 5% = £2,500
• FTB SDLT: £2,500
• Standard SDLT: £7,500
• Saving: £5,000

Joint purchase scenarios

Scenario A: Both first-time buyers

• Buyer A: never owned
• Buyer B: never owned
• Full FTB relief

Scenario B: One previous owner

• Buyer A: never owned
• Buyer B: owned 2015–2019
• No relief — pay standard rates

Scenario C: Buying solo where one partner has previously owned

• Buyer A: never owned
• Buyer B: previously owned
• Purchase in Buyer A's sole name
• Full FTB relief — subject to Buyer A qualifying for the mortgage alone
• Buyer B may be added to the deeds later, although the additional-property surcharge rules may apply if Buyer B retains any other property at that point

Scenario D: Inherited a share of a property

• Buyer A: inherited 20% of a parent's property (since sold)
• Buyer B: never owned
• No relief — Buyer A's inherited share counts as previous ownership

Applying for FTB relief

The relief is claimed on the SDLT return, which the buyer's solicitor normally files within 14 days of completion.

Step 1 (before completion):

• Solicitor confirms eligibility against the four conditions
• Calculates SDLT applying the FTB relief
• Buyer transfers funds to the solicitor

Step 2 (completion):

• Property purchase completes
• Solicitor files the SDLT return claiming first-time buyer relief
• Funds released to HMRC

Step 3 (within 14 days):

• SDLT paid (often £0 for properties under £300,000)
• Late filing triggers a £100 fixed penalty plus daily interest

Step 4 (after HMRC processes the return):

• SDLT5 certificate issued
• Solicitor submits the SDLT5 to the Land Registry to complete registration

The buyer's responsibility: confirming eligibility honestly. False declarations to HMRC are treated as fraud and carry penalties of up to 100% of the tax owed, plus interest.

Scotland and Wales: separate schemes

Scotland: Land and Buildings Transaction Tax

Scotland operates LBTT through Revenue Scotland, not HMRC.

First-time buyer relief (Scotland):

• 0% up to £175,000
• Applies to any property price (no upper cap)
• Maximum saving: £600

Example: £350,000 property in Scotland (first-time buyer)

• First £175,000: 0% = £0
• Next £75,000 (to £250,000): 2% = £1,500
• Next £75,000 (to £325,000): 5% = £3,750
• Remaining £25,000: 10% = £2,500
• Total LBTT: £7,750

England equivalent (first-time buyer at £350,000): £2,500. England is £5,250 cheaper on this purchase.

Wales: Land Transaction Tax

Wales operates no first-time buyer relief. First-time buyers pay standard LTT rates.

LTT main rates (in force from 10 October 2022):

• £0 – £225,000: 0%
• £225,001 – £400,000: 6%
• £400,001 – £750,000: 7.5%

Example: £300,000 property in Wales (first-time buyer)

• First £225,000: 0% = £0
• Remaining £75,000: 6% = £4,500
• Total LTT: £4,500

England equivalent: £0. England is £4,500 cheaper on this purchase.

Northern Ireland

Uses the same SDLT system as England, including identical first-time buyer relief and the 5% additional-property surcharge.

Common mistakes to avoid

Mistake 1: Not declaring previous ownership

HMRC cross-references Land Registry records, will-and-probate filings, and overseas property declarations. Penalties for false relief claims include:

• The full SDLT owed
• Interest charged daily from the original payment date
• Penalties up to 100% of the tax owed
• Possible criminal prosecution in serious cases

Mistake 2: Crossing the £500,000 line

A property at £501,000 attracts £5,000 more SDLT than the same property at £500,000 — because the relief disappears entirely, not just for the £1,000 over. Negotiating below £500,000 is one of the highest-return negotiations a first-time buyer can make.

Mistake 3: Joint purchase without checking both buyers' history

Both buyers must be first-time buyers. Discovering after exchange that a partner inherited a share of a property years earlier means the relief is lost and the saving (up to £5,000) disappears. Confirm in writing before exchange.

Mistake 4: Claiming relief on a buy-to-let

The relief is restricted to a main residence. A first-time buyer purchasing a flat to rent out cannot claim FTB relief and additionally pays the 5% surcharge.

Strategies for maximising the saving

Target properties under £300,000

Properties at £300,000 or less attract zero SDLT for first-time buyers. The full £5,000 saving accrues with no upfront tax to find.

Negotiate below £500,000 if close

Any first-time buyer offered a property between £500,001 and £510,000 should consider negotiating below £500,000. The £5,000 SDLT saving alone often justifies a £5,000–£10,000 price reduction request.

Apportion the price between property and chattels

SDLT applies to the property and fixtures, not to chattels (free-standing items). Apportioning a portion of the price to removable items — appliances, curtains, garden furniture — can keep the property value under a threshold, provided the chattels valuation is realistic. HMRC will challenge inflated chattels values.

Buy in a single name where one partner has previously owned

Where Buyer A has never owned and Buyer B has, a purchase in Buyer A's sole name preserves the relief. The decision depends on whether Buyer A can support the mortgage alone, and on the long-term implications for joint ownership of the home.

Using our stamp duty calculator

1. Enter the property price
2. Select "First-time buyer"
3. Choose location (England/NI, Scotland, or Wales)
4. See:
   • SDLT owed under FTB rules
   • Standard-rate comparison
   • Exact saving
   • Eligibility check

Calculate FTB Stamp Duty →

Frequently asked questions

I inherited my parents' house. Am I still a first-time buyer?

No. Inheriting property — even a partial share, even if sold immediately — counts as previous ownership and disqualifies the buyer from FTB relief.

Can I buy with my partner if they previously owned?

Yes, but the relief is lost. Buying in the first-time buyer's sole name preserves the relief, subject to the lender's affordability checks for a single applicant.

What if I owned property abroad?

Overseas property counts. FTB relief requires the buyer to have never owned residential property anywhere in the world.

Can I buy a £550,000 property with FTB relief?

No. Properties over £500,000 receive no relief at all. The buyer pays standard SDLT of £17,500 on a £550,000 property.

How do I claim the relief?

The solicitor claims it automatically on the SDLT return at completion. The buyer confirms eligibility against the four conditions before the return is filed.

Can I get FTB relief on a buy-to-let?

No. The relief is restricted to a main residence. A first-time buyer buying a buy-to-let pays standard SDLT plus the 5% additional-property surcharge.

I owned with an ex-partner. Can I still claim?

No. Previous ownership — joint or sole — disqualifies the buyer from FTB relief.

When did the threshold change to £300,000?

On 1 April 2025. The £425,000 threshold that applied from 23 September 2022 was a temporary increase; it reverted to £300,000 alongside the standard nil-rate band reverting to £125,000. The change was announced in the November 2022 Autumn Statement.

What if I lie to get the relief?

HMRC reconciles SDLT returns against Land Registry data and overseas declarations. False claims trigger repayment of the relief, interest from the original payment date, penalties up to 100% of the tax owed, and in serious cases criminal prosecution.

Related resources

• UK Stamp Duty Calculator — calculate your exact SDLT
• Stamp Duty Complete Guide — all rates explained
• First-Time Buyer Deposit Guide — how much to save
• Mortgage Calculator — monthly payments

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Official sources:

• HMRC: Stamp Duty Land Tax: relief for first-time buyers
• HMRC: Stamp Duty Land Tax
• Revenue Scotland: LBTT first-time buyer relief
• Welsh Revenue Authority: Land Transaction Tax

Last updated: 23 June 2026. Reflects the FTB nil-rate band of £300,000 and £500,000 cap in force from 1 April 2025, the 5% additional-property surcharge from 31 October 2024, and the separate LBTT and LTT schemes in Scotland and Wales.

Disclaimer: FTB relief eligibility depends on the buyer's exact circumstances and the HMRC rules at the time of completion. The figures above use the rates published by HMRC, Revenue Scotland, and the Welsh Revenue Authority as at the last updated date. Rules change at Budget — always verify eligibility with a solicitor before exchanging contracts. UK Calculator provides information and calculation tools; it is not a tax adviser or solicitor.