Stamp Duty for first-time buyers
The short answer
In England and Northern Ireland, first-time buyers pay no Stamp Duty on the first £300,000 of a home and 5% on the part between £300,000 and £500,000. Above £500,000 the relief disappears completely and normal rates apply to the whole price. The most a first-time buyer can save is £5,000. Scotland has a much smaller relief, and Wales has none.
Who counts as a first-time buyer
Everyone buying must be a first-time buyer. If you're buying with a partner who has owned a home before, even years ago, neither of you gets the relief.
"First-time" means you've never owned a home, or a share of one, anywhere in the world, including one you inherited. You also have to intend to live in the property as your main home. Buying to let doesn't qualify.
What you'll pay in England and Northern Ireland
Standard rates since April 2025 are 0% up to £125,000, 2% to £250,000, and 5% to £925,000. First-time buyer relief replaces the first two bands with a single 0% band up to £300,000. Until April 2025 the limits were £425,000 and £625,000, so older articles quote figures that no longer apply.
| Price | First-time buyer | Moving home | 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 | £15,500 | £0 |
At £400,000, a first-time buyer pays 5% on the £100,000 above £300,000. Someone moving home pays 2% on £125,000 to £250,000 (£2,500) and 5% on the £150,000 above that (£7,500).
The £500,000 cliff edge
The relief doesn't taper away. At £500,000 a first-time buyer pays £10,000. At £500,001 the relief is gone, and the bill jumps to £15,000.05. If you're negotiating on a home priced just over £500,000, getting the price to £500,000 or below saves more than the reduction itself.
Be careful with fixtures and fittings. Paying separately for genuine contents such as furniture can be legitimate, but they have to be valued at what they're really worth. HMRC can challenge values that look inflated to get under a limit, and charge penalties.
Scotland and Wales
Scotland (Land and Buildings Transaction Tax). First-time buyer relief raises the 0% band from £145,000 to £175,000. There's no upper price limit, but because it only widens one band at 2%, it's worth at most £600. A first-time buyer at £300,000 pays £4,000 instead of £4,600.
Wales (Land Transaction Tax). There's no first-time buyer relief. Instead everyone pays nothing on the first £225,000, and 6% on the part up to £400,000. A home at £300,000 costs £4,500 in tax, first-time buyer or not.
Practical points
Your conveyancer files the return. In England and Northern Ireland the return and payment are due within 14 days of completion, and in Scotland and Wales within 30 days. Your conveyancer normally handles it and asks you for the money before completion, so budget for it alongside the deposit, legal fees and survey.
Shared ownership. Shared ownership purchases have their own rules about how much you pay, and when. Ask your conveyancer to check which option suits you before you complete.
Common questions
Is a new-build home treated any differently? No. The same rates and the same first-time buyer relief apply to new builds and older homes, worked out on the price you pay. Buying off-plan, the tax is normally due when the purchase completes, not when you reserve or exchange contracts.
Can I get the relief on a buy-to-let or a holiday home? No. You have to intend to live in the home as your only or main residence. And if you already own a home, you aren’t a first-time buyer: buying a second one in England or Northern Ireland usually means paying the higher rates for additional homes, 5% on top of the standard rates.
Do I still need a return if there's nothing to pay? Usually, yes. In England and Northern Ireland a Stamp Duty return is needed for most purchases of £40,000 or more, and you claim first-time buyer relief on that return, so it has to be filed even when the relief brings the bill to £0. Your conveyancer normally does this as part of completion.
Work it out with your own figures
Work out the tax on your purchase in England, Northern Ireland, Scotland or Wales.
Open the Stamp Duty Property Tax CalculatorNext step: work out the monthly payments on your mortgage.