First Time Buyer Relief
Stamp Duty Savings for New Homeowners
Stamp Duty Relief for First Time Buyers
Purchasing your first home in England or Northern Ireland? You could benefit from significant Stamp Duty savings, with complete relief on properties up to £300,000 and reduced rates on homes valued up to £500,000.
Current Relief Thresholds (2026)
Following changes implemented from 1st April 2026, first time buyers benefit from:
- £0 - £300,000: Zero Stamp Duty payable
- £300,001 - £500,000: 5% on the portion above £300,000
- Above £500,000: Standard SDLT rates apply to full price
Why Was This Relief Introduced?
The Government designed first time buyer relief to address one of the biggest barriers to home ownership: the upfront costs of purchasing a property. By reducing or eliminating Stamp Duty for eligible buyers, the scheme aims to:
- Help more people get onto the property ladder
- Reduce the financial burden of saving for a deposit plus purchase costs
- Support buyers in higher-priced areas like London and the South East
This relief has been available for purchases since 22nd November 2017, helping thousands of first-time buyers save money on their home purchase.
📋 Eligibility Requirements
To qualify for first time buyer relief, you must meet specific criteria set by HMRC:
Never Owned Property
You must never have owned residential property anywhere in the world
Main Residence
The property must be purchased as your primary home
Individual Purchase
You're buying in your own name (or jointly with other first-time buyers)
Price Limit
Property value must not exceed £500,000 for relief to apply
📄 Claiming the Relief
When completing your property purchase, you'll need to:
- Declare that you've never previously owned property (in the UK or abroad)
- Submit a special first time buyer code with your SDLT return
- Confirm the property will be your main residence
Your solicitor or conveyancer will typically handle this paperwork as part of the conveyancing process.
First Time Buyer SDLT Rates
Compare first time buyer rates with standard residential rates:
| Property Value | First Time Buyer Rate | Standard Rate |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 - £250,000 | 0% | 2% |
| £250,001 - £300,000 | 0% | 5% |
| £300,001 - £500,000 | 5% | 5% |
| Above £500,000 | Standard rates apply | Standard rates |
Example: A first time buyer purchasing a home for £400,000 would pay £5,000 in SDLT (5% on £100,000). A standard buyer would pay £7,500 for the same property—a saving of £2,500!
👥 Joint Purchases
Buying with a partner, friend, or family member? There's an important rule to understand:
All joint purchasers must be first time buyers to qualify for the relief. If even one person has previously owned property, the entire purchase loses eligibility for first time buyer rates.
This rule applies regardless of the ownership split. Even if one person is only buying a 10% share, their previous property ownership disqualifies the whole transaction.
🏴 First Time Buyers in Scotland
Scotland operates its own property tax system called Land and Buildings Transaction Tax (LBTT). First time buyer relief has been available since June 2018:
- Zero rate threshold: Raised to £175,000 for first time buyers
- Purchases above £175,000 still benefit from relief on the portion below this threshold
- Significant savings compared to standard LBTT rates
🏴 First Time Buyers in Wales
Wales uses Land Transaction Tax (LTT) instead of SDLT. The situation differs from England:
- First time buyer relief is not currently available under LTT
- However, the standard zero-rate threshold is £180,000
- This higher threshold captures most first-time purchases in Wales
The Welsh Government has structured LTT with a higher starting threshold, which provides some natural relief for first time buyers without requiring a specific relief scheme.
🔗 Important Links
| Purpose | Link |
|---|---|
| HMRC SDLT Guide | Visit HMRC |
| First Time Buyer Relief | View Relief Details |
| Calculate Your SDLT | Use Calculator |
| Scotland LBTT Calculator | Revenue Scotland |
| Wales LTT Calculator | Welsh Revenue |
❓ Frequently Asked Questions (FAQs)
Can I claim first time buyer relief if I own property abroad?
No, you cannot claim relief if you have ever owned residential property anywhere in the world, including overseas properties.
What happens if the property costs more than £500,000?
If property value exceeds £500,000, you lose all first time buyer relief. Standard SDLT rates apply to the entire purchase price from zero.
Can I claim relief if buying with my partner who already owns property?
No, all joint purchasers must be first time buyers. If one person owns property, the whole purchase loses eligibility for relief.
Is first time buyer relief available for buy-to-let purchases?
No, relief only applies when property is purchased as your main residence. Investment properties do not qualify for first time buyer relief.
How do I prove I am a first time buyer?
Your solicitor will submit a first time buyer code with your SDLT return. You must declare you have never owned property before.
Can I use relief on new build properties?
Yes, first time buyer relief applies to both new build and existing properties. Property type does not affect eligibility for relief.
Does inherited property count as previous ownership?
Yes, if you inherited residential property, you may not qualify as a first time buyer even if you no longer own it.
Calculate Your First Time Buyer Savings
Use our calculator to see exactly how much you'll save with first time buyer relief compared to standard SDLT rates.