First-time buyer stamp duty relief: who gets it and how much
The short answer: in England and Northern Ireland, first-time buyers pay no stamp duty up to £300,000 and 5% on the part between £300,000 and £500,000. Above £500,000, the relief disappears entirely and you pay the normal rates on the whole price. Every buyer on the purchase must be a first-time buyer, and you must plan to live there.
First-time buyer stamp duty by price
| Price | First-time buyer | Home mover | Saving |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £510,000 | £15,500 | £15,500 | £0 |
| £600,000 | £20,000 | £20,000 | £0 |
The saving reaches £5,000 at £300,000 and stays at that level all the way to £500,000, because above £300,000 both buyers pay 5% on each extra pound. Then it drops to nothing.
The £500,000 cliff
This is a cliff, not a taper. At £500,000 a first-time buyer pays £10,000. At £510,000, they pay £15,500, an extra £5,500 for £10,000 more on the price. If a home is just over £500,000, it is worth knowing that, before you offer. Separately paying for fixtures and fittings can reduce the price, but only at a fair value for items that are genuinely not part of the property; HMRC checks this.
Who counts as a first-time buyer
For stamp duty, you are a first-time buyer if you have never owned, or had a share in, a home anywhere in the world. That rules out more people than you might expect:
- An inherited share in a house, even a small one, counts as owning.
- A home owned abroad counts.
- Shared ownership, if you already own a share, counts.
- A partner or co-buyer who has owned before means neither of you gets the relief, even if you never have.
Owning a buy-to-let or holiday let only, never a home you lived in, still counts. A spouse or civil partner who is not buying with you does not affect your relief, but most married buyers buy jointly.
Other conditions
- You must intend to live in the property as your main home.
- The relief applies to residential property only, including a home bought with a Lifetime ISA (which has its own £450,000 cap).
- Shared ownership buyers can claim the relief, either on the share they buy or on the full market value if they choose to pay stamp duty on the whole property at the start.
How to claim
You claim it on the stamp duty return, which your solicitor or conveyancer normally files for you. The return and any tax must reach HMRC within 14 days of completion. Wrongly claiming the relief means paying the difference plus interest and possibly a penalty, so tell your solicitor about any past property, even a share.
Scotland and Wales
Stamp duty applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax, with its own first-time buyer relief that raises the zero band. Wales has Land Transaction Tax, which has no first-time buyer relief, but its zero band is higher than England's standard one and applies to everyone. Check Revenue Scotland or the Welsh Revenue Authority for current bands.
Budgeting for the rest
Stamp duty is only one cost. Add solicitor fees, surveys, mortgage fees and moving costs. See saving for a house deposit, stamp duty at every price and how much mortgage you can get on your salary.
The date that counts
Stamp duty is charged at the rates in force on the completion date, not when you exchange or have an offer accepted. That mattered in April 2025, when the first-time buyer threshold fell from £425,000 to £300,000 and the price cap from £625,000 to £500,000. If rates change again, buyers near the deadline need their completion date, not their offer date, to fall the right side of it.
Lifetime ISA and the relief together
You can use a Lifetime ISA and claim first-time buyer relief on the same purchase, as long as the price is within the Lifetime ISA's £450,000 cap. Buying above £450,000 means a 20% charge on Lifetime ISA withdrawals, even though the stamp duty relief still applies up to £500,000. Check both limits before you offer.
Rates are for England and Northern Ireland for purchases completing from 1 April 2025 onwards.
Sources
Common questions
How much stamp duty does a first-time buyer pay?
None on a home up to £300,000 in England and Northern Ireland. Between £300,000 and £500,000 you pay 5% on the part above £300,000, so £5,000 on a £400,000 home.
What happens if the house costs more than £500,000?
You lose the relief completely and pay the normal rates on the whole price. A £510,000 home costs £15,500 in stamp duty, against £10,000 at £500,000.
Can I get first-time buyer relief if I buy with someone who has owned before?
No. Every buyer must be a first-time buyer for the relief to apply. If one of you has owned a home anywhere in the world, you pay the normal rates.
Do I count as a first-time buyer if I inherited a share of a house?
No. Owning any interest in a home, including an inherited share, means you are not a first-time buyer for stamp duty, even if you never lived there.
Is there first-time buyer relief in Scotland and Wales?
Scotland has its own relief under Land and Buildings Transaction Tax, which raises the zero band for first-time buyers. Wales has no first-time buyer relief, but its zero band applies to everyone.