United Kingdom Edition

Stamp duty guide

Stamp Duty for First-Time Buyers 2025: Relief, Thresholds and Calculator

Stamp Duty for First-Time Buyers 2025 changed materially in England and Northern Ireland after the April 2025 threshold reversion. A qualifying first-time buyer now pays 0% up to £300,000 and 5% on the portion from £300,001 to £500,000, but relief is unavailable above £500,000.

In short

Stamp duty for first-time buyers in 2025 depends on the UK jurisdiction. In England and Northern Ireland, qualifying first-time buyers pay 0% SDLT up to £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000. Scotland has LBTT relief up to £175,000. Wales has no first-time buyer relief.

SDLT / LBTT / LTT first-time buyer rules bands - UK

Administered by HMRC / Revenue Scotland / Welsh Revenue Authority.

BandStandard rateAdditional dwelling
England & NI: £0 - £300,0000%No FTB relief for additional dwellings
England & NI: £300,001 - £500,0005%No relief above £500,000
Scotland: £0 - £175,0000%FTB relief increases nil-rate band from £145,000
WalesNo separate FTB reliefMain LTT rates apply

Stamp Duty for First-Time Buyers 2025: the direct answer

A first-time buyer is generally someone who has never owned a dwelling anywhere in the world and is buying a main residence. In England and Northern Ireland, all buyers in a joint purchase must normally be first-time buyers to claim SDLT relief. Scotland uses a similar all-buyers principle for LBTT first-time buyer relief. Wales does not offer a separate first-time buyer LTT relief. These figures are based on 2025 - 26 published rates. Always verify with HMRC, Revenue Scotland or the Welsh Revenue Authority.

JurisdictionFTB ruleMaximum relief effect
England & NI0% to £300,000; 5% to £500,000Large saving up to £500,000
Scotland0% to £175,000Up to £600 saving
WalesNo separate reliefMain LTT rates apply

Definition of a first-time buyer

For SDLT and LBTT purposes, a first-time buyer is not simply someone buying their first home in the UK. The test normally looks at whether the buyer has previously owned a dwelling anywhere in the world. That can include inherited, gifted or overseas property ownership. The property being purchased must also be intended as the buyer’s only or main residence. Buy-to-let purchases and additional dwelling purchases should not be treated as first-time buyer relief cases.

England and Northern Ireland first-time buyer relief

From 1 April 2025, SDLT first-time buyer relief is 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the purchase price exceeds £500,000, the buyer cannot claim the relief and must use the standard SDLT rates. This creates a hard eligibility cliff at £500,000, so a purchase at £500,000 and a purchase at £501,000 can be treated very differently.

Purchase priceFTB SDLT treatmentResult
Up to £300,0000%No SDLT
£300,001 - £500,0005% on amount above £300,000Partial SDLT
Over £500,000No FTB reliefStandard SDLT rates

Scotland first-time buyer relief

Scotland’s LBTT first-time buyer relief raises the nil-rate band from £145,000 to £175,000. This is a smaller relief than the English SDLT version, with a maximum saving of £600. It still matters for lower-priced purchases because it reduces the amount taxed at 2%. Above £175,000, the standard Scottish bands apply to the relevant slices of the price.

Price sliceStandard LBTTFTB LBTT
£0 - £145,0000%0%
£145,001 - £175,0002%0%
£175,001 - £250,0002%2%
Above £250,000Standard higher bandsStandard higher bands

Wales: no first-time buyer relief

Wales does not have separate first-time buyer relief for LTT. A first-time buyer at £280,000 pays the same £3,300 as any other standard buyer. This often surprises buyers moving from English SDLT content because the term “stamp duty first-time buyer relief” is widely searched, but it does not apply to Welsh LTT.

Worked example: England first-time buyer at £250,000

A qualifying first-time buyer in England or Northern Ireland pays no SDLT at £250,000 because the entire price is within the 0% first-time buyer band.

Worked example: England first-time buyer at £450,000

A qualifying first-time buyer at £450,000 pays £7,500. The first £300,000 is taxed at 0%, and the remaining £150,000 is taxed at 5%. The effective rate is 1.67%.

Worked examples: Scotland £200,000 and Wales £280,000

In Scotland, a first-time buyer at £200,000 pays £500 because only £25,000 is taxed at 2% after the £175,000 relief threshold. In Wales, a first-time buyer at £280,000 pays £3,300 because no separate first-time buyer relief exists and the main LTT bands apply.

ScenarioTaxReason
Scotland FTB at £200,000£5000% to £175,000, then 2%
Wales FTB at £280,000£3,300No separate FTB relief; main LTT rates

Joint purchase eligibility rules

In joint purchases, first-time buyer relief is usually all-or-nothing. If one buyer has previously owned a dwelling, the purchase will normally fail the first-time buyer condition even if the other buyer has never owned. This matters for couples, parent-assisted purchases and buyers added for mortgage affordability. A calculator can estimate the tax, but eligibility should be confirmed by a solicitor before claiming relief.

Check your first-time buyer SDLT, LBTT or LTT position using your jurisdiction and purchase price.

Calculate First-Time Buyer Stamp Duty →

Frequently Asked Questions

Some do and some do not. In England and Northern Ireland, first-time buyers pay no SDLT up to £300,000 and 5% from £300,001 to £500,000, but no relief is available above £500,000. Scotland has a smaller LBTT relief. Wales has no separate first-time buyer relief.

For SDLT in England and Northern Ireland, the first-time buyer nil-rate threshold is £300,000 from 1 April 2025. The maximum price eligible for first-time buyer relief is £500,000.

In England and Northern Ireland, a qualifying first-time buyer pays £0 SDLT on a £250,000 purchase. In Scotland, the LBTT result is also £0. In Wales, there is no first-time buyer relief, so a £250,000 standard residential purchase would pay £1,500 LTT.

In England and Northern Ireland, a qualifying first-time buyer pays £7,500 SDLT on £450,000: 0% on £300,000 and 5% on £150,000.

For SDLT and LBTT first-time buyer relief, all buyers in a joint purchase normally need to be first-time buyers. If one buyer has previously owned a dwelling, the relief is usually unavailable.

No. Wales has no separate LTT relief for first-time buyers. First-time buyers pay the same main residential LTT rates as standard buyers.

Scotland’s LBTT first-time buyer relief increases the nil-rate band to £175,000 and saves up to £600. England’s SDLT relief is more generous for purchases up to £500,000, with 0% up to £300,000.

Usually no. First-time buyer relief is designed for buyers purchasing a main residence, not for buy-to-let or additional dwelling purchases.

Usually no. For SDLT first-time buyer relief, previous ownership of a dwelling anywhere in the world can prevent you from qualifying. Buyers with overseas ownership history should get legal advice before claiming relief.

Yes. A calculator is useful because the relief has cliffs and jurisdiction differences. A £450,000 first-time buyer purchase in England is treated differently from a £450,000 purchase in Scotland or Wales.

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