First-Time Buyer Stamp Duty
The complete guide to FTB relief - save up to £5,000 on your first home.
Key Takeaways
- The maximum FTB saving is capped at £5,000 on any property between £300,000 and £500,000. You pay standard rates above £500,000
- Owning commercial property without residential elements does not disqualify FTB status, but mixed-use property with any residential component does
- If both buyers contribute 50% each but one previously owned property abroad, you lose 100% of the relief. Ownership share is irrelevant
- Help to Buy equity loans can be combined with FTB relief on the portion you purchase, but shared ownership rules apply differently to staircasing
- HMRC processed over 300,000 FTB relief claims in 2024. Claims are spot-checked, and providing false information carries unlimited penalties
- Property held in trust where you have beneficial ownership disqualifies you even if you have no direct control over the asset
- The £300,000 threshold applies to England and Northern Ireland only. Scotland uses £175,000 under LBTT with different relief rules
- Divorce or separation from a property-owning partner does not restore FTB status. Once disqualified, you can never reclaim eligibility
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. Use our FTB calculator to see your exact savings.
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
Who Qualifies as a First-Time Buyer?
To qualify as a first-time buyer for stamp duty purposes, you must have never owned a freehold or leasehold interest in a residential property anywhere in the world. This definition is strictly enforced by HMRC.
The key word is "interest" - this means any legal ownership stake, no matter how small. Even if you:
- Owned a property decades ago and sold it
- Inherited a property or share of a property from a relative
- Own property abroad in another country
- Have property held in a trust where you're a beneficiary
- Previously owned commercial property with a residential element (e.g., flat above a shop)
...you are not considered a first-time buyer. The relief is designed exclusively for people who have never had any form of property ownership.
What If My Partner Has Owned Before?
Critical Rule for Joint Purchases
If you're buying with someone else, both buyers must qualify as first-time buyers to claim the relief. If one person has ever owned property before, the entire purchase loses FTB relief - even if the other buyer is a genuine first-time buyer.
This applies to all joint purchases:
- Married couples and civil partners
- Unmarried couples buying together
- Friends or siblings buying jointly
- Any scenario where multiple names appear on the title deed
There's no workaround for this rule. If your partner previously owned property, you'll both pay standard rates even if it's your first property. The only solution is for the first-time buyer to purchase the property solely in their name (though this may have other legal and financial implications).
FTB Relief vs Standard Rates: Savings Table
First-time buyer relief provides meaningful savings, particularly on properties in the £300,000 to £500,000 range. Here's exactly how much you save:
| Property Price | Standard SDLT | FTB SDLT | You Save | % Saved |
|---|---|---|---|---|
| £300,000 | £5,000 | £0 | £5,000 | 100% |
| £350,000 | £7,500 | £2,500 | £5,000 | 67% |
| £400,000 | £10,000 | £5,000 | £5,000 | 50% |
| £450,000 | £12,500 | £7,500 | £5,000 | 40% |
| £500,000 | £15,000 | £10,000 | £5,000 | 33% |
Note: The maximum saving is £5,000 at any price point between £300,000 and £500,000. Properties over £500,000 get no relief at all.
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
First-Time Buyer Relief in Scotland and Wales
Scotland and Wales operate different stamp duty systems with their own rules for first-time buyers. Read our full Scotland LBTT guide for details.
Scotland: Higher Threshold for FTBs
Scotland offers first-time buyer relief through Land and Buildings Transaction Tax (LBTT). First-time buyers benefit from a higher nil-rate threshold:
- First-time buyers: 0% up to £175,000
- Standard buyers: 0% up to £145,000
- Extra relief: £30,000 threshold increase (worth £600 saved at £175k)
Unlike England, there's no upper price limit - the relief applies regardless of property value. However, the benefit is limited to the additional nil-rate band.
Wales: No First-Time Buyer Relief
Wales has no first-time buyer relief under its Land Transaction Tax (LTT) system. All buyers - whether first-time or not - pay the same standard LTT rates. This means Welsh first-time buyers pay 0% up to £225,000, but so does everyone else buying a main residence.
| Region | FTB Benefit | Upper Limit |
|---|---|---|
| England & NI | 0% up to £300k, 5% to £500k | £500,000 |
| Scotland | 0% up to £175k (vs £145k standard) | None |
| Wales | None | N/A |
Common Mistakes That Lose FTB Status
Many buyers lose first-time buyer relief due to common misunderstandings about the rules. Here are the most frequent mistakes:
Inherited Property (Even If Sold)
Inheriting property - even decades ago - disqualifies you from FTB relief. It doesn't matter if you sold it immediately, never lived in it, or inherited just a small share. Once you've had a legal interest in residential property, you're no longer a first-time buyer.
Buying With Non-FTB Partner
If your partner has owned property before (anywhere in the world), putting both names on the deed means losing FTB relief entirely - even though it's genuinely your first property. The only workaround is buying solely in the FTB's name, though this has other legal implications.
Owning Property Abroad
The "worldwide property" rule means any residential property ownership anywhere on the planet disqualifies you. This includes holiday homes in Spain, inherited apartments in Poland, family properties in India - absolutely any country counts.
Property Held in Trust
If you're a beneficiary of a trust that owns residential property, and you have a beneficial interest in that property, you're not a first-time buyer - even if you have no direct control over the asset.
Commercial Property With Residential Element
Owning purely commercial property (like an office or shop) doesn't affect FTB status. However, if you owned a mixed-use property with any residential element (e.g., flat above a shop), that residential interest disqualifies you.
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).
Frequently Asked Questions About First-Time Buyer Relief
Am I a first-time buyer if I inherited a property?
No. Inheriting property - even a small share - means you've owned an interest in residential property, which disqualifies you from first-time buyer relief. This applies even if you inherited the property decades ago, sold it immediately, or never lived in it. The moment you had legal ownership (through inheritance), you ceased to be a first-time buyer for stamp duty purposes.
Can I be a first-time buyer if I owned property abroad?
No. HMRC's definition includes property ownership anywhere in the world. If you currently own or have ever owned residential property in any country - whether a holiday home in Spain, an apartment in Poland, or family property in India - you do not qualify as a first-time buyer for UK stamp duty purposes. The worldwide property rule is strictly enforced.
What if I'm a first-time buyer but my partner isn't?
If you're buying jointly and one buyer has owned property before, neither of you can claim first-time buyer relief - the entire purchase pays standard rates. This rule applies to married couples, unmarried partners, and any joint purchase. The only way to claim FTB relief is if the first-time buyer purchases the property solely in their name, though this has other legal and financial implications you should discuss with a solicitor. See our FTB vs standard comparison for scenarios.
Is there a maximum property price for first-time buyer relief?
Yes. First-time buyer relief only applies to properties costing £500,000 or less. If the purchase price exceeds £500,000 (even by £1), you get no relief at all and pay standard stamp duty rates on the entire price. At exactly £500,000 you qualify for relief: 0% on the first £300,000, then 5% on the remaining £200,000 (total: £10,000). At £500,001 you pay standard rates (total: £15,000.05).
Do first-time buyers pay stamp duty in Wales?
Wales has no first-time buyer relief under its Land Transaction Tax (LTT) system. However, all buyers (first-time or not) benefit from a £225,000 nil-rate threshold on main residences in Wales, which is higher than England's £300,000 threshold for first-time buyers. In practice, Welsh first-time buyers buying under £225,000 pay nothing, but they get no special advantage over other buyers - everyone pays the same LTT rates.
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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.