First-Time Buyer Stamp Duty Relief — Complete Guide

First-time buyers in England and Northern Ireland pay no stamp duty on properties up to £425,000, saving thousands compared to standard rates.

How much is first-time buyer stamp duty relief worth?

First-time buyer (FTB) relief raises the 0% threshold from £250,000 to £425,000, and the relief tapers to £625,000 before cutting off entirely¹.

0% threshold for first-time buyers

£425,000 (vs £250,000 standard)

Relief ceiling

£625,000 (no relief above this price)

Average saving on £350k property

£5,000

Worked examples:

• £300,000 house: First-time buyer pays £0 (full relief). Standard buyer pays £2,500. Saving: £2,500
• £425,000 house: First-time buyer pays £0. Standard buyer pays £8,750. Saving: £8,750
• £500,000 house: First-time buyer pays £3,750 (5% on £75,000 above £425k). Standard buyer pays £12,500. Saving: £8,750
• £700,000 house: No relief. Both pay £22,500 (standard rates apply)

Who qualifies as a first-time buyer?

To qualify for FTB stamp duty relief in England and Northern Ireland¹:

1. Never owned property anywhere: You must never have owned a freehold or leasehold interest in residential property, in the UK or abroad. Inherited property counts as ownership.
2. Residential property only: Buy-to-let purchases don't qualify, even if it's your first property.
3. Main residence: You must intend to occupy the property as your only or main residence.
4. Joint purchases: If buying with someone else, all buyers must be first-time buyers. If one person previously owned property, no one gets the relief.
5. Purchase price cap: The property must cost £625,000 or less. Above this, standard rates apply with no relief.

What counts as previously owning property?

You are NOT a first-time buyer if you've ever owned:

• A house, flat or other residential property (freehold or leasehold)
• Property abroad (any country)
• A share in a property (including joint ownership or inherited property)
• A caravan or houseboat used as a main residence

Commercial property ownership (shops, offices) does not disqualify you.

Joint purchases and first-time buyer relief

When buying with a partner or friend, all buyers must qualify as first-time buyers for the relief to apply².

Example: You're buying a £400,000 house with your partner. You've never owned property, but your partner previously owned a flat they sold 5 years ago. Neither of you gets the relief, and you pay the standard £7,500 stamp duty. Had both been first-time buyers, you'd pay £0.

Claiming first-time buyer relief

Your solicitor claims FTB relief automatically when filing the SDLT return. You don't apply separately. The solicitor ticks the FTB box on the SDLT1 form and applies the correct rates.

If your solicitor incorrectly applies standard rates, you can amend the return and claim a refund within 12 months of the filing deadline.

First-time buyer stamp duty in Scotland and Wales

Scotland and Wales have separate first-time buyer schemes:

• Scotland (LBTT): First-time buyers pay 0% up to £175,000, then standard rates. Lower threshold than England. See our Scotland stamp duty guide.
• Wales (LTT): No specific first-time buyer relief. All buyers use the same LTT rates. See our Wales stamp duty guide.

Changes to first-time buyer relief

The current £425,000 threshold was introduced in September 2022, replacing the previous £300,000 limit. The relief is permanent legislation, not a temporary scheme, but thresholds can change in future budgets³.

Last reviewed: 2026-06-24