First-Time Buyer Stamp Duty
The complete guide to FTB relief - save up to £5,000 on your first home.
In this article
What is First-Time Buyer Relief?
First-time buyer relief is a stamp duty discount introduced in November 2017 to help people buy their first home. It provides significant savings compared to standard rates.
Following the April 2025 changes, first-time buyers pay:
- £0 on properties up to £300,000
- 5% on the portion between £300,001 and £500,000
- No relief if the property exceeds £500,000
FTB Rates vs Standard Rates
| Property Price | Standard SDLT | FTB SDLT | You Save |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £400,000 | £10,000 | £5,000 | £5,000 |
| £500,000 | £15,000 | £10,000 | £5,000 |
| £550,000 | £17,500 | £17,500 | £0 |
Note: Properties over £500,000 get no FTB relief at all - you pay standard rates on the entire price.
Am I a First-Time Buyer?
HMRC's definition is strict. You're a first-time buyer if you have never owned an interest in a residential property anywhere in the world.
You ARE a First-Time Buyer If:
- You've never owned any property anywhere in the world
- You've only ever rented property
- You lived in a property owned by parents but weren't on the deed
- You've only owned commercial property (e.g., a shop with no residential element)
You Are NOT a First-Time Buyer If:
- You've ever owned property, even if you sold it years ago
- You inherited property (even a small share)
- You own property abroad (even in another country)
- You owned property as a child (even if parents were legal owners)
- You own a share in a property through a trust
Joint Purchases
Critical Rule for Joint Purchases
If you're buying with someone else, both buyers must be first-time buyers to claim the relief. If one person has ever owned property, neither of you can claim FTB relief.
This applies to:
- Married couples and civil partners
- Unmarried couples buying together
- Friends or family members buying jointly
- Any joint purchase with two or more names on the deed
Worldwide Property Rule
HMRC's definition covers property ownership anywhere in the world. If you own (or have ever owned) property in another country, you're not a first-time buyer for UK stamp duty purposes.
This includes:
- Holiday homes abroad
- Investment properties in other countries
- Property inherited overseas
- Family property you have a legal interest in
How to Claim FTB Relief
You don't need to apply separately. Your solicitor claims the relief when they submit your SDLT return to HMRC after completion.
- Tell your solicitor you're a first-time buyer
- Provide evidence if requested (typically just a declaration)
- Your solicitor includes the relief claim in your SDLT return
- You pay the reduced amount at completion
Scotland and Wales
Scotland (LBTT)
First-time buyers get a higher nil-rate threshold of £175,000 (vs £145,000 for others). No relief above this - different system to England.
Wales (LTT)
Wales has no first-time buyer relief. All buyers pay the same LTT rates regardless of whether it's their first property.
Common Questions
What if my property costs exactly £500,000?
You still qualify for relief. The £500,000 limit is inclusive. You'll pay £10,000 in stamp duty (5% on £200,000, the portion above £300,000).
What if I owned property but it was repossessed?
Unfortunately, you're still not a first-time buyer. The fact that you previously owned property disqualifies you, regardless of how that ownership ended.
Can I claim relief on a buy-to-let property?
No. FTB relief only applies to properties you intend to live in as your main residence. Buy-to-let properties attract the additional 5% surcharge instead.
What about shared ownership?
Yes, first-time buyers can claim relief on shared ownership purchases. You can choose to pay stamp duty on just your share or on the full market value (market value election).
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.