First-Time Buyer Stamp Duty Relief: Complete Guide for 2026/27
Buying your first home is expensive enough without a large stamp duty bill on top. Fortunately, first-time buyer stamp duty relief can save you thousands of pounds — but the rules differ across the UK, and a common misunderstanding can cost you the relief entirely.
This guide explains the current thresholds from 1 April 2025, who qualifies, how the relief works in England, Scotland, Wales and Northern Ireland, and includes worked examples at different price points so you know exactly what to expect.
What Is First-Time Buyer Stamp Duty Relief?
First-time buyer (FTB) relief was introduced by the UK government in November 2017 to help people buying their first home. It reduces the amount of Stamp Duty Land Tax (SDLT) payable on residential property purchases in England and Northern Ireland by raising the threshold at which stamp duty begins.
The relief means that many first-time buyers pay no stamp duty at all, and those purchasing at higher price points pay significantly less than standard rates.
Current First-Time Buyer Thresholds (From 1 April 2025)
From 1 April 2025, the first-time buyer SDLT rates in England and Northern Ireland are:
| Purchase price band | SDLT rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
Important: If the purchase price exceeds £500,000, you lose first-time buyer relief entirely and pay SDLT at standard rates on the full amount. There is no tapering — a purchase at £500,000 qualifies; a purchase at £500,001 does not.
What Changed on 1 April 2025?
Between 23 September 2022 and 31 March 2025, the government temporarily raised FTB thresholds. During that period, the nil-rate band was £425,000 (instead of £300,000) and the upper limit was £625,000 (instead of £500,000). These temporary thresholds ended on 31 March 2025, and the rates reverted to their permanent levels.
If you are buying now, the current thresholds shown in the table above apply.
Who Qualifies as a First-Time Buyer?
HMRC defines a first-time buyer as an individual who has never owned a freehold or leasehold interest in a residential property, anywhere in the world. This definition is strict, and several points catch people out:
- Worldwide scope: If you have previously owned a residential property in another country, you do not qualify — even if you have never owned in the UK.
- Joint purchases: When buying with another person, all buyers must individually qualify as first-time buyers. If one of you has owned property before, the entire purchase loses FTB relief.
- Inherited property: If you have inherited a residential property — even a share of one — this may count as prior ownership and disqualify you. Whether it does depends on the specifics: if you held a beneficial interest in a dwelling, HMRC is likely to consider you a previous owner.
- Buy-to-let: If you previously bought a property as an investment (even if you never lived in it), you are not a first-time buyer.
- The property must be your residence: You must intend to live in the property as your only or main home. First-time buyer relief is not available on investment properties.
Tip: If you are unsure whether prior property ownership disqualifies you — for example, an inherited share or a property owned abroad — seek advice from a solicitor before completing your purchase. Claiming relief incorrectly can lead to penalties.
Worked Examples: England and Northern Ireland
The following examples show how first-time buyer relief works at different price points, compared with standard SDLT rates.
Example 1: £250,000 Purchase (FTB)
The entire amount falls within the £300,000 nil-rate band.
| Band | Rate | Tax |
|---|---|---|
| £0 – £250,000 | 0% | £0 |
| Total SDLT | £0 |
A standard-rate buyer would pay £2,500 on this purchase (0% on the first £125,000, then 2% on the next £125,000).
Example 2: £350,000 Purchase (FTB)
| Band | Rate | Tax |
|---|---|---|
| £0 – £300,000 | 0% | £0 |
| £300,001 – £350,000 | 5% | £2,500 |
| Total SDLT | £2,500 |
A standard-rate buyer would pay £5,000 on this purchase. First-time buyer relief saves £2,500.
Example 3: £500,000 Purchase (FTB)
| Band | Rate | Tax |
|---|---|---|
| £0 – £300,000 | 0% | £0 |
| £300,001 – £500,000 | 5% | £10,000 |
| Total SDLT | £10,000 |
A standard-rate buyer would pay £15,000. First-time buyer relief saves £5,000.
Example 4: £510,000 Purchase — Relief Lost
Because the price exceeds £500,000, first-time buyer relief is not available. The buyer pays standard SDLT rates on the full amount:
| Band | Rate | Tax |
|---|---|---|
| £0 – £125,000 | 0% | £0 |
| £125,001 – £250,000 | 2% | £2,500 |
| £250,001 – £510,000 | 5% | £13,000 |
| Total SDLT | £15,500 |
Going just £10,000 over the threshold means paying £15,500 instead of £10,000 — an extra £5,500. This cliff edge is one of the most important things for first-time buyers to understand.
First-Time Buyer Relief in Scotland (LBTT)
Scotland has its own property transaction tax called Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland. Scotland offers its own first-time buyer relief, which works differently from the SDLT version.
FTB relief in Scotland raises the nil-rate band from £145,000 to £175,000. Crucially, there is no upper price cap — unlike England and Northern Ireland, you do not lose the relief if the property costs more than a certain amount.
Standard vs FTB LBTT Rates
| Purchase price band | Standard rate | FTB rate |
|---|---|---|
| Up to £145,000 | 0% | 0% |
| £145,001 – £175,000 | 2% | 0% (relief) |
| £175,001 – £250,000 | 2% | 2% |
| £250,001 – £325,000 | 5% | 5% |
| £325,001 – £750,000 | 10% | 10% |
| Over £750,000 | 12% | 12% |
The maximum saving from Scottish FTB relief is £600 (2% on the £30,000 between £145,000 and £175,000).
Example: £200,000 Purchase in Scotland (FTB)
| Band | Rate | Tax |
|---|---|---|
| £0 – £175,000 | 0% | £0 |
| £175,001 – £200,000 | 2% | £500 |
| Total LBTT | £500 |
A standard-rate buyer would pay £1,100 (2% on £55,000 above £145,000). The FTB relief saves £600.
Wales — No First-Time Buyer Relief
Wales has its own property tax called Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. Unlike England, Northern Ireland and Scotland, Wales does not offer any specific first-time buyer relief. All buyers — whether first-time or not — pay the same standard LTT rates.
The current LTT rates are:
| Purchase price band | LTT rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
While there is no FTB relief, the nil-rate band of £225,000 is relatively generous. Properties below this threshold incur no LTT regardless of buyer status.
Example: £350,000 Purchase in Wales
| Band | Rate | Tax |
|---|---|---|
| £0 – £225,000 | 0% | £0 |
| £225,001 – £350,000 | 6% | £7,500 |
| Total LTT | £7,500 |
This amount applies whether you are a first-time buyer or not.
First-Time Buyer Relief and Shared Ownership
If you are buying through a shared ownership scheme, first-time buyer relief is still available — but the way it applies depends on which stamp duty payment option you choose. With shared ownership, you can elect to pay SDLT on the share you are purchasing (Option 1) or on the full market value of the property (Option 2), and each option has different implications for FTB relief.
The interaction between shared ownership and first-time buyer relief can be complex. For a detailed explanation of both options and how they affect your stamp duty bill, see our guide to shared ownership stamp duty.
Common Mistakes That Cost First-Time Buyers
These are the most frequent errors we see:
1. Buying With a Non-First-Time Buyer
If you are buying jointly with a partner, spouse or friend who has previously owned property, the entire purchase loses first-time buyer relief. Both (or all) buyers must individually qualify. This is the single most common way people lose the relief unexpectedly.
If your partner has owned before, it may be worth considering whether purchasing in one name is appropriate — though this has other legal and financial implications you should discuss with a solicitor.
2. Forgetting About Property Owned Abroad
The HMRC definition covers residential property anywhere in the world. If you owned an apartment overseas — even years ago, even if it was inherited — you may not qualify. This catches people who grew up abroad or who have family property in other countries.
3. Inheriting a Property
Receiving an inherited property (or a share of one) can disqualify you from first-time buyer relief. Even if you sold it immediately, the fact that you held a beneficial interest in a dwelling may mean HMRC considers you a previous owner. If you have inherited property, check your position carefully before assuming you qualify.
4. Exceeding the £500,000 Threshold by a Small Amount
As the worked example above shows, paying £510,000 instead of £500,000 results in £5,500 more in stamp duty. If you are negotiating near this boundary, it is worth understanding the financial impact. In some cases, negotiating a price of £500,000 rather than slightly above it could save you thousands.
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| Country | FTB relief available? | Nil-rate band (FTB) | Upper price cap |
|---|---|---|---|
| England | Yes | £300,000 | £500,000 |
| Northern Ireland | Yes | £300,000 | £500,000 |
| Scotland | Yes | £175,000 | No cap |
| Wales | No | £225,000 (all buyers) | N/A |
First-time buyer relief can save you up to £5,000 in England and Northern Ireland, or £600 in Scotland. Make sure you understand the eligibility rules — particularly around joint purchases and worldwide property ownership — so you do not miss out or claim incorrectly.