Key takeaways
- First-time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000.
- The relief is lost entirely if the price is over £500,000.
- Everyone buying must be a first-time buyer who intends to live in the property as their main home.
- Having owned a home anywhere in the world, including through an inheritance, means you do not qualify.
- Shared ownership buyers can usually claim the relief too.
First-time buyers in England and Northern Ireland pay less Stamp Duty Land Tax (SDLT) than other buyers. Since 1 April 2025 the relief has been smaller than in the previous few years, but it still saves up to £5,000 and means many first homes pay no tax at all.
The rates for first-time buyers
| Portion of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
If the price is over £500,000, there is no first-time buyer relief and the standard rates apply to the whole price.
Examples
| Price | First-time buyer SDLT | Standard SDLT | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £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 (standard rates) | £15,500 | £0 |
The jump at £500,000 is sharp: a buyer at £510,000 pays £5,500 more than one at £500,000. Negotiating or apportioning carefully (for example, paying separately for genuine chattels such as furniture at a fair value) can matter near the threshold.
Who counts as a first-time buyer
You qualify if:
- you have never owned a freehold or leasehold interest in a residential property, in the UK or anywhere else in the world
- you intend to occupy the property as your only or main residence
If you are buying with someone else, all buyers must be first-time buyers. If one of you has owned a home before, even a share of one, the relief is not available to either of you.
Situations that disqualify you include:
- having owned a home abroad
- having inherited a share of a residential property, even if you never lived in it
- owning a buy-to-let or holiday home
Renting a home as a tenant does not count as previous ownership. Check the position carefully if you have ever been named on a property title, or are a beneficiary of a trust that owns property.
Shared ownership
First-time buyers buying through shared ownership can claim the relief:
- if they elect to pay SDLT on the full market value at the outset, first-time buyer relief applies to that value (if it is £500,000 or less)
- if they pay SDLT in stages instead, relief can apply to the first share purchased
The higher rates and first-time buyers
The 5% surcharge for additional properties does not usually apply to first-time buyers, because they own no other home. It can apply if a first-time buyer buys jointly with someone who already owns a property, which is another reason relief is lost in mixed purchases.
Claiming the relief
Your solicitor or conveyancer claims the relief on the SDLT return, using the relief code for first-time buyers. You must file the return and pay any SDLT within 14 days of completion. If HMRC later finds you were not a first-time buyer, you will owe the difference plus interest and possibly a penalty.
Scotland and Wales
- Scotland (LBTT): first-time buyers get a higher nil-rate band through first-time buyer relief.
- Wales (LTT): there is no specific first-time buyer relief, but the nil-rate band is higher than in England.
Check the rules with Revenue Scotland or the Welsh Revenue Authority.
Frequently asked questions
Do first-time buyers pay stamp duty in 2026?
Not on the first £300,000. They pay 5% on the part of the price between £300,001 and £500,000, and standard rates if the price is over £500,000.
Can I get first-time buyer relief if my partner has owned a home before?
No. If you are buying together, everyone buying must be a first-time buyer.
Does inheriting part of a house stop me being a first-time buyer?
Yes, generally. Having owned an interest in a residential property, including through an inheritance, means you no longer qualify.
How much does first-time buyer relief save?
Up to £5,000 compared with standard rates, for properties between £300,000 and £500,000.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.