Key facts
- First-time buyers pay no SDLT on the first £300,000 of the purchase price (from 1 April 2025).
- A reduced rate of 5% applies on the portion from £300,001 to £500,000.
- The relief is only available on properties costing £500,000 or less.
- If the purchase price exceeds £500,000, no relief is available and standard rates apply to the entire amount.
- Both buyers in a joint purchase must be first-time buyers to qualify.
Overview of First-Time Buyer Relief
First-time buyer (FTB) relief provides a higher nil-rate threshold for qualifying purchasers buying their first home. The relief was introduced in November 2017 and has been made permanent with adjusted thresholds.[1]
From 1 April 2025, the thresholds are:
| Purchase Price Band | FTB Rate | Standard Rate (for comparison) |
|---|---|---|
| Up to £300,000 | 0% | 0% up to £125,000, then 2% |
| £300,001 – £500,000 | 5% | 5% |
Temporary higher thresholds ended: Between 23 September 2022 and 31 March 2025, the FTB nil-rate band was £425,000 with a purchase price cap of £625,000. From 1 April 2025, these revert to £300,000 and £500,000 respectively.
Who Qualifies?
To qualify for first-time buyer relief, you must meet all of these conditions:[1]
- You have never owned a freehold or leasehold interest in a dwelling anywhere in the world
- You are purchasing a single dwelling (not multiple properties in a single transaction)
- The purchase price is £500,000 or less
- You intend to occupy the property as your only or main home
“Owned” includes:
- A freehold or leasehold interest you acquired by purchase, gift, or inheritance
- A beneficial interest in a property held by a trust for your benefit
- Property owned overseas
Joint Purchases
For a joint purchase (e.g. a couple buying together), all purchasers must be first-time buyers. If even one buyer has previously owned a residential property, the relief is not available and the standard rates apply.[3]
Tip: If you are buying with a partner who has previously owned property, you may wish to consider whether the non-FTB partner should be excluded from the purchase (buying in the first-time buyer’s sole name). However, this has wider implications for mortgage affordability, ownership rights, and potential higher-rate surcharges — take professional advice.
Worked Examples
Example 1: £280,000 Property
| Slice | FTB Rate | SDLT |
|---|---|---|
| £0 – £280,000 | 0% | £0 |
| Total SDLT | £0 | |
| Standard rate comparison | £3,100 | |
| FTB saving | £3,100 | |
Example 2: £450,000 Property
| Slice | FTB Rate | SDLT |
|---|---|---|
| £0 – £300,000 | 0% | £0 |
| £300,001 – £450,000 | 5% | £7,500 |
| Total SDLT | £7,500 | |
| Standard rate comparison | £12,500 | |
| FTB saving | £5,000 | |
Example 3: £510,000 Property (Relief Lost)
Because the purchase price exceeds £500,000, first-time buyer relief is not available. The standard residential rates apply, resulting in SDLT of £15,500.
FTB Relief and Shared Ownership
First-time buyers purchasing through a shared ownership scheme can still claim the relief. They can choose to either:[1]
- Pay SDLT on the share they are purchasing (e.g. 50% of the market value)
- Elect to pay SDLT on the full market value (market value election) to avoid paying further SDLT on staircasing purchases
If electing to pay on the share, first-time buyer relief applies to the initial share price.
How to Claim
First-time buyer relief is claimed on the SDLT return. Your solicitor or conveyancer will:[1]
- Ask you to confirm that you are a first-time buyer (and that any joint buyer is also a first-time buyer)
- Include the relief claim code on the SDLT return when filing with HMRC
- Calculate the reduced SDLT amount
There is no separate application form — the relief is claimed through the return itself.
Frequently Asked Questions
Who qualifies as a first-time buyer for SDLT?
A first-time buyer is someone who has never owned a freehold or leasehold interest in a residential property anywhere in the world. This includes property you may have inherited or been given. If you have ever owned a property — even if you sold it years ago — you do not qualify.
How much can a first-time buyer save?
On a £300,000 property, a first-time buyer pays £0 in SDLT (saving £5,000 compared to the standard rates). On a £450,000 property, they pay £7,500 (saving £5,000). On a £500,000 property, they pay £10,000 (saving £5,000).
Can I claim first-time buyer relief on a buy-to-let?
No. First-time buyer relief only applies to properties purchased as a dwelling that you intend to occupy as your only or main home. Buy-to-let and investment properties do not qualify.
What if one joint buyer is a first-time buyer and the other is not?
The relief is lost. All purchasers must be first-time buyers for the relief to apply. If one buyer has previously owned a property, the standard SDLT rates apply to the entire transaction.
Further Reading
- First-Time Buyers (Detailed) — edge cases, previous ownership, and eligibility rules
- Residential SDLT Rates (2025/26) — full rate tables for all buyers
- Shared Ownership & SDLT — SDLT on shared ownership purchases
- SDLT Rates History — how the FTB thresholds have changed over time
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