First-time buyer relief is a reduced rate of SDLT for people buying their first home to live in. From 1 April 2025 first-time buyers pay no stamp duty on the first £300,000 of the price and 5% on the part between £300,001 and £500,000. Above £500,000 the relief is not available at all.
First-time buyer SDLT rates from 1 April 2025
| Portion of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price over £500,000 | No relief — standard rates on the whole price |
Between 23 September 2022 and 31 March 2025 the limits were higher: 0% up to £425,000 and a £625,000 cap. The rates that apply depend on your completion date.
Worked examples
| Price | First-time buyer | Standard rates | Saving |
|---|---|---|---|
| £300,000 | £0 | £5,000 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £510,000 | £15,500 (no relief) | £15,500 | £0 |
Who qualifies for first-time buyer relief?
- You have never owned a freehold or a leasehold interest in a home — anywhere in the world, including inherited property and shares of a home.
- You intend to live in the property as your only or main residence.
- The property is residential and the price is £500,000 or less.
- You are buying as an individual — companies and most trusts cannot claim it.
Living in a property you rented, or a property owned by your parents, does not stop you being a first-time buyer. Owning a home in the past — even briefly, or abroad — does.
What happens if the price is over £500,000?
The relief is not tapered. At £500,000 a first-time buyer pays £10,000; at £500,001 they pay standard rates on the whole price — £15,000. If you are close to the cap, any increase in the price (including how furniture and fittings are valued in the contract) can remove the relief completely.
Buying with someone else
Every buyer must be a first-time buyer. If you buy with a partner who has owned a home before, no relief is available — even if they are not living there. Spouses and civil partners are looked at together.
How do you claim first-time buyer relief?
The relief is claimed on the SDLT return, which your solicitor or conveyancer files with HMRC within 14 days of completion. There is no separate application. If you later turn out not to qualify — for example, you never move in — HMRC can recover the tax.
Wales and Scotland
Wales has no first-time buyer relief for Land Transaction Tax. Scotland's LBTT has its own relief, which raises the nil-rate band to £175,000.
This guide summarises HMRC's published rules for guidance. Your solicitor or conveyancer will confirm whether the relief applies to your purchase.