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 have previously held a freehold or leasehold (with more than 21 years to run) in a residential dwelling in your own name, including via inheritance or gift
- 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 "major interest" in land: a freehold, or a leasehold with more than 21 years to run at the time of acquisition. Any previous acquisition of such an interest (whether by purchase, gift, or inheritance) disqualifies you from FTB relief. HMRC's definition is in the SDLT Manual SDLTM29845.
Specifically, you are not a first-time buyer if you:
- Owned a property decades ago and sold it
- Inherited a residential property or share of one (even a 1% share)
- Own residential property abroad
- Have a residential property held in a trust where you are the beneficial owner
- Previously owned mixed-use property that included a dwelling
Exceptions (these do NOT disqualify you): Owning only non-residential property (commercial property without any dwelling element); being registered as an occupant or tenant under a short leasehold (less than 21 years) such as an assured shorthold tenancy; and property that was legally registered in a parent's name for the benefit of a minor (the child is not treated as having acquired a major interest for FTB purposes).
Eligibility at a Glance: Rules, Limits & Declaration
A quick reference summary of the FTB relief eligibility criteria, the price limits that apply, the formal declaration HMRC requires, and the inheritance test that catches many buyers by surprise.
FTB Relief Price Limits (England and Northern Ireland)
Relief is structured in three bands. The hard cutoff above £500,000 is absolute: if the purchase price is even £1 over, you get no FTB relief and pay standard rates on the full amount.
| Purchase Price | Relief Available | SDLT Payable |
|---|---|---|
| Up to £300,000 | Full relief | £0 |
| £300,001 to £500,000 | Partial relief | 5% on the amount above £300,000 |
| Above £500,000 | No relief | Standard rates on the full price |
Declaration Requirement (Relief Code 32)
FTB relief is not applied automatically. It must be positively claimed on your SDLT return by entering relief code 32 (first-time buyer relief). Your solicitor or conveyancer will handle this in practice, but you remain legally responsible for the accuracy of the declaration.
What Your Solicitor Does
Your conveyancer will ask you to confirm FTB status in writing during the conveyancing process. They will then complete the SDLT return on your behalf, apply relief code 32, and calculate the reduced SDLT amount.
Always answer your solicitor's questions about previous property ownership completely and honestly. If you incorrectly claim the relief, HMRC can recover the unpaid SDLT plus interest and penalties, even years later.
Inheritance Test: When Inherited Property Disqualifies You
The general rule: if you inherited a freehold or a leasehold with 21 or more years remaining, you have "owned" residential property and lose first-time buyer status, even if you immediately sold the property.
The Key Question Is What Interest You Received
If a parent left you their house outright and you became the registered freehold owner, you are no longer a first-time buyer. The disqualification is permanent.
If you inherited only a share of a property, for example as one of several beneficiaries where the property was sold without you registering as an owner, the position may differ. This is a complex area where the specific facts matter and professional advice is recommended.
Beneficial Interest: The Hidden Disqualifier
You can be disqualified from FTB relief even if your name was never on the title deeds. If you had a beneficial interest in a property, through a trust arrangement, an undocumented contribution to a partner's purchase, or a family arrangement, HMRC may treat this as previous ownership.
Short-term residential lets you occupied as a tenant (assured shorthold tenancies, student housing, hotel stays) do not count as ownership. Only a leasehold of 21 or more years or a freehold interest triggers the test.
For a precise breakdown of how to apply for the relief once you have confirmed eligibility, see the how to claim section below. To calculate your exact SDLT under FTB rates, use the first-time buyer stamp duty calculator.
What If My Partner Has Owned Before?
Joint purchases: all buyers must qualify
If multiple people are named as purchasers on the SDLT return, every one of them must meet the first-time buyer definition for FTB relief to apply to the purchase. If one named purchaser has previously owned property, the purchase does not qualify for FTB relief.
This applies whenever multiple people are named as purchasers on the SDLT1 return, including married couples buying jointly, unmarried couples, friends or siblings buying together, etc.
Important distinction: non-purchasing spouse
HMRC's FTB definition (SDLTM29845) is explicit:
"Where only one party to a marriage / civil partnership is purchasing the dwelling, it is not necessary to consider whether the non-purchasing spouse / civil partner has previously owned a relevant interest in a dwelling to work out eligibility, unlike when considering whether the higher rates apply."
This means: if you are a genuine first-time buyer married to someone who has previously owned property, and you buy the new home solely in your own name (only you are named as purchaser on the SDLT return), you CAN claim FTB relief. Your spouse's previous ownership is irrelevant for FTB eligibility purposes. Note that the additional dwelling surcharge rules are different, though: for the higher rates, a spouse or civil partner's property DOES count.
The key point is who is named as a purchaser on the SDLT return. If only the first-time buyer is on the return (and on the title), FTB relief applies. If the non-first-time-buyer spouse is also named as a purchaser, FTB relief does not apply because the joint-purchase rule requires every named purchaser to qualify.
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. For detailed breakdowns at every price including regional comparisons, see stamp duty by property price. 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.
First-Time Buyer Partial Relief: £300,000 to £500,000
When a first-time buyer purchases a property between £300,001 and £500,000, the relief does not disappear entirely. Under partial relief, HMRC treats the first £300,000 as taxable at 0% (nil rate) and applies 5% only to the amount above £300,000. This is more generous than standard rates, which apply a different band structure on the same purchase price.
FTB Partial Relief Rate Structure
| Portion of Price | FTB Rate |
|---|---|
| £0 to £300,000 | 0% (nil rate) |
| £300,001 to £500,000 | 5% |
Step-by-Step Worked Examples
These examples walk through the exact calculation at four price points within the partial relief range, comparing FTB rates against what a standard (non-FTB) buyer would pay.
Example 1: £350,000 Purchase
FTB Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £300,000 | 0% | £0 |
| £300,001 - £350,000 | 5% | £2,500 |
| Total FTB SDLT | £2,500 | |
Standard Rate Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £250,000 | 0% | £0 |
| £250,001 - £350,000 | 5% | £5,000 |
| Total Standard SDLT | £5,000 | |
FTB saving at £350,000: £2,500
Example 2: £400,000 Purchase
FTB Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £300,000 | 0% | £0 |
| £300,001 - £400,000 | 5% | £5,000 |
| Total FTB SDLT | £5,000 | |
Standard Rate Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £250,000 | 0% | £0 |
| £250,001 - £400,000 | 5% | £7,500 |
| Total Standard SDLT | £7,500 | |
FTB saving at £400,000: £2,500
Example 3: £450,000 Purchase
FTB Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £300,000 | 0% | £0 |
| £300,001 - £450,000 | 5% | £7,500 |
| Total FTB SDLT | £7,500 | |
Standard Rate Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £250,000 | 0% | £0 |
| £250,001 - £450,000 | 5% | £10,000 |
| Total Standard SDLT | £10,000 | |
FTB saving at £450,000: £2,500
Example 4: £500,000 Purchase (Maximum Qualifying Price)
FTB Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £300,000 | 0% | £0 |
| £300,001 - £500,000 | 5% | £10,000 |
| Total FTB SDLT | £10,000 | |
Standard Rate Calculation
| Band | Rate | Tax |
|---|---|---|
| £0 - £250,000 | 0% | £0 |
| £250,001 - £500,000 | 5% | £12,500 |
| Total Standard SDLT | £12,500 | |
FTB saving at £500,000: £2,500
The Hard Cutoff Above £500,000
The £500,000 limit is a cliff edge, not a gradual phase-out. If the purchase price is £500,001, no FTB relief applies at all, and the buyer pays standard SDLT on the entire price from the first pound.
The £500,000 Cliff Edge in Practice
| Price | FTB SDLT | Standard SDLT |
|---|---|---|
| £500,000 | £10,000 | £12,500 |
| £500,001 | £12,500 (no relief) | £12,500 |
| £525,000 | £13,750 (no relief) | £13,750 |
Going just £1 over the £500,000 threshold means paying an extra £2,500 in SDLT (the difference between £10,000 and £12,500 at £500,001). Above £500,000, the first-time buyer and a standard buyer pay exactly the same SDLT: the relief is simply absent. This cliff edge is worth factoring into negotiations. If a property is priced at £502,000, negotiating down to £500,000 would save you £2,600 in SDLT. Use the first-time buyer calculator to run the numbers for any price within the qualifying range.
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
Buying soon? Get your stamp duty checked before you commit
A specialist can confirm the right figure and flag any reliefs you qualify for.
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 First-Time Buyer Relief
FTB relief is claimed on the original SDLT return after completion. There is no separate application form, no advance approval, and no way to claim verbally. Your eligibility is self-declared on the return, and HMRC may later challenge it on review.
The Claiming Process: Step by Step
- You instruct a conveyancer and confirm in writing that you are a first-time buyer
- Your solicitor verifies eligibility based on your responses (see the eligibility criteria above)
- Exchange of contracts takes place. FTB status is assessed at completion, not exchange
- Completion takes place and the 14-day filing window begins
- Your solicitor files the SDLT1 return with relief code 32 and calculates SDLT at FTB rates
- You pay the reduced SDLT through your solicitor
- HMRC issues an SDLT5 certificate confirming the return has been filed
Relief Code 32 on the SDLT Return
The SDLT1 return has a specific field for relief codes. First-time buyer relief is identified as code 32. Your solicitor enters this code in the “relief claimed” section of the return, and the calculation engine applies the FTB rate structure (0% to £300,000, 5% on the portion to £500,000).
If the relief code is omitted or entered incorrectly, the system calculates SDLT at standard rates. This is a mechanical error correctable by amendment within 12 months, but only if you spot it.
SDLT Relief Codes: Reference
| Code | Relief |
|---|---|
| 32 | First-time buyer relief |
| 37 | Replacement of main residence (RMR) |
| 49 | Transfers in connection with divorce |
Code 32 applies in England and Northern Ireland only. Scotland (LBTT) and Wales (LTT) have separate first-time buyer schemes administered by Revenue Scotland and the Welsh Revenue Authority respectively.
Your Solicitor's Role and Your Responsibility
What Your Solicitor Should Do
- Ask you to confirm in writing that you are a first-time buyer
- Check that the property price is within the qualifying limits
- Verify the property is residential and qualifies as a main residence purchase
- Apply relief code 32 on the SDLT1 return and calculate SDLT using the FTB rate structure
- File the return and pay SDLT within 14 days of completion
- Provide you with a copy of the SDLT5 certificate (proof of filing)
What You Must Do
- Answer your solicitor's questions about previous ownership honestly and completely
- Disclose any overseas property you have held or currently hold
- Disclose any inherited property or beneficial interests
- Confirm the status of all joint purchasers (if applicable)
- Review the SDLT figures on your completion statement before signing
- Ask for and keep a copy of the SDLT5 certificate after completion
Your Legal Responsibility
Even though your solicitor files the return, the taxpayer (you) is legally responsible for its accuracy. If you incorrectly confirm FTB status and the relief is applied, HMRC can pursue you for the unpaid SDLT plus interest and penalties. This liability does not transfer to your conveyancer simply because they submitted the paperwork.
The 14-Day SDLT Return Deadline
You have 14 days from the effective date of the transaction (usually completion) to file the SDLT return and pay any SDLT due. The deadline is statutory; HMRC has no discretion to extend it.
Penalties for a Missed Deadline
- Up to 3 months late: £100 fixed penalty
- 3 to 12 months late: £200 fixed penalty
- Over 12 months: tax-geared penalty up to 100% of the SDLT due
- Interest accrues on the unpaid SDLT from day 15 onward
In practice, your solicitor files the return on or before completion day as part of standard conveyancing. See the SDLT deadlines and penalties guide for a detailed breakdown of the penalty calculation.
If Your Solicitor Missed the Relief
Discovering after completion that the SDLT return was filed without FTB relief is more common than people realise. The fix is an amended return.
The Amendment Process
- Ask your solicitor to confirm whether FTB relief was claimed and request a copy of your SDLT5 certificate
- If the relief was not applied, your solicitor files an amended SDLT return within 12 months of the original filing date
- The amendment replaces the original return and corrects the calculation by adding relief code 32
- HMRC processes the overpayment and issues a repayment, typically within 6 to 8 weeks
- HMRC pays a small repayment supplement (interest) on the over-claimed SDLT
| Timeframe | Can You Amend? | How |
|---|---|---|
| Within 14 days of completion | Yes, file original correctly | Ask solicitor to file with code 32 |
| 14 days to 12 months after filing | Yes, via amendment | File amended SDLT return |
| Over 12 months after original filing | Generally no | Limited exceptional circumstances only |
After 12 months, amendment is generally not possible. Practically: check your SDLT5 certificate within the first year of completion and act quickly if relief was missed. For other types of overpaid SDLT recovery (surcharge refunds, transitional claims), see the stamp duty refund claim process.
Common Reasons First-Time Buyer Relief Is Denied
No Exceptions Policy
HMRC applies the first-time buyer eligibility tests with no discretionary exceptions. If you have previously owned a freehold or leasehold of 21 or more years anywhere in the world, you are not a first-time buyer for SDLT purposes. Circumstances such as divorce, financial hardship, or short-term ownership do not create exemptions.
Inherited Property
Inheriting property is one of the most commonly misunderstood routes to disqualification. For SDLT purposes, receiving a property you did not choose to buy is treated the same as purchasing one.
When Inheritance Disqualifies You
- You inherited a freehold residential property outright and were registered as the owner at Land Registry
- You inherited a residential leasehold with 21 or more years remaining at the time of inheritance
- You were a named beneficiary in a will and received a property (even if you immediately sold it)
- You received a property via intestacy rules after a family member died without a will
When Inheritance May Not Disqualify You
- You were one of several beneficiaries and the estate was distributed in cash (you never took legal ownership of the property itself)
- The inherited property was only held in trust and you never had a beneficial interest that amounted to ownership
- The inherited property was commercial, not residential
- The inherited leasehold had less than 21 years remaining at the date of inheritance
If you were a beneficiary but the executors sold the property as part of administering the estate before distributing the proceeds, you likely did not "own" the property in the SDLT sense, as legal title may never have vested in you. For the broader context, see the inheritance stamp duty impact guide.
Gifted Property and Beneficial Interest
Receiving a property as a gift follows similar rules to inheritance. The absence of a cash payment does not change your ownership status for SDLT purposes. You can also be disqualified even when your name was never on the title deeds.
Outright Gift of Property
If someone transferred a residential property to you without payment and you were registered at Land Registry as the legal owner, you have owned property. This disqualifies you, even if you never lived in it and even if you gave the property back or sold it immediately.
Beneficial Interest Through Contributions
If you contributed financially to a property purchase (for example, funding a deposit for a partner's home) but were not on the title deeds, HMRC may still treat you as having had a beneficial interest, which counts as ownership. This is especially likely if there was any written agreement, email chain, or other evidence that your contribution entitled you to a share of the property.
Trust Arrangements
Being the beneficial owner of property held in a trust counts as ownership. This includes bare trusts where you are the sole beneficiary, discretionary trusts where you have a current beneficial entitlement, and interest in possession trusts where you have the right to benefit from the property.
Overseas Property Ownership
The worldwide scope of the first-time buyer test is absolute. Any residential property anywhere in the world counts, regardless of whether you still own it.
Common Overseas Property Traps
- Holiday home inherited from overseas relatives
- Property purchased abroad while living as an expat
- Overseas family home in parents' country of origin where you are a co-owner
- Investment property purchased in another EU country
- Student accommodation owned abroad during studies
How HMRC Assesses Overseas Ownership
HMRC assesses the nature of the overseas interest by reference to UK SDLT concepts: does the overseas interest equate to a freehold or a leasehold of 21 or more years? The specific title system of the foreign country is considered, but substance over form applies. If you effectively owned a property, it counts.
Example: A buyer who grew up in the UK, worked in Australia for 5 years and owned an apartment there, then returned to the UK, is not a first-time buyer for SDLT purposes. The Australian apartment was residential property held in their name, even though they have since sold it and returned to the UK.
Joint Purchase with a Non-FTB
When two or more people purchase together, every person must independently satisfy the first-time buyer test. One disqualified buyer in the group removes the relief for the whole transaction. There is no partial relief for the qualifying buyer.
| Buyer Situation | FTB Relief? | Why |
|---|---|---|
| Two genuine FTBs buying together | Yes | Both satisfy the test independently |
| FTB buying with a partner who sold their previous home last year | No | Partner has prior ownership history |
| FTB buying with a parent who helps with the mortgage but will not live there | No (if parent on title) | Parent's ownership history applies if on title deeds |
| FTB buying with a sibling who has never owned property | Yes | Both satisfy the test independently |
| FTB whose partner is named on the mortgage but not on the title deeds | Likely yes | FTB test applies to legal owners, not mortgage parties |
Shared Ownership Edge Cases
Previous Shared Ownership Purchase
If you previously purchased a shared ownership property, you held a leasehold interest in that property. A standard shared ownership lease of 99 or 125 years clearly exceeds the 21-year threshold and disqualifies you from claiming FTB relief on a future purchase.
Staircasing to Full Ownership
If you staircased your shared ownership property to 100% and became the outright owner, you are no longer a first-time buyer for any subsequent purchase. The full ownership you achieved through staircasing is indistinguishable from any other form of property ownership. Selling your stake back to the housing association does not reset the clock either: the test looks at whether you have ever owned.
What to Do If You Are Disqualified
If you do not qualify for FTB relief, that does not mean there is nothing you can do to manage your SDLT liability.
1. Check Standard Rate Thresholds
Standard SDLT rates have a nil-rate band on the first £125,000. For properties up to £250,000, the total SDLT is modest (2% on the amount between £125,001 and £250,000). Check the current stamp duty rates 2026 to see exactly what you would pay.
2. Consider Whether Any Other Relief Applies
Other reliefs may reduce your SDLT in specific situations, including relief for the replacement of a main residence, transfers in connection with divorce, and certain charity or public body reliefs. Check the reliefs hub for a full list.
3. Do Not Claim Relief You Do Not Qualify For
Incorrectly claiming FTB relief to avoid SDLT is tax fraud. HMRC has access to Land Registry data, and the penalty regime for fraudulent relief claims can include tax-geared penalties of up to 100% of the unpaid SDLT plus prosecution in serious cases.
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.
Reviewed by
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 Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.