First-Time Buyer Eligibility Checker
Find out whether you qualify for first-time buyer stamp duty relief with our step-by-step decision guide and common scenario table.
In this article
Key Takeaways
- You must never have owned a freehold or leasehold interest in a dwelling anywhere in the world to qualify as a first-time buyer
- All joint purchasers must individually meet the first-time buyer definition — one disqualified buyer disqualifies the entire transaction
- FTB relief gives you 0% on the first £300,000 and 5% on £300,001–£500,000; properties above £500,000 receive no relief whatsoever
- Inheriting property — even a small share — counts as ownership and permanently disqualifies you from FTB status
- Owning commercial property or a bare plot of land does not disqualify you; the rule applies to residential dwellings only
- FTB relief applies in England and Northern Ireland; Scotland has LBTT FTB relief at a £175,000 threshold; Wales has no FTB relief
- The maximum possible saving from FTB relief is £5,000 — achieved on any property priced at exactly £500,000
- HMRC can investigate and claw back relief if you incorrectly claimed FTB status; penalties are unlimited
What Is First-Time Buyer Eligibility?
First-time buyer stamp duty relief is a reduction in Stamp Duty Land Tax (SDLT) available to buyers purchasing their very first residential property in England or Northern Ireland. According to GOV.UK — Stamp Duty Land Tax: First-time buyers, the relief provides a nil rate on the first £300,000 of the purchase price and a 5% rate on the portion between £300,001 and £500,000. Crucially, properties above £500,000 receive no relief at all.
The relief was introduced in November 2017 and has saved eligible buyers up to £5,000 on their first home purchase. However, the eligibility rules are strict and unforgiving — a single disqualifying factor eliminates the relief entirely.
This page walks you through a structured eligibility check so you can determine your status before speaking to a solicitor or conveyancer.
Interactive Eligibility Checker
Answer each question below to find out whether you qualify for first-time buyer stamp duty relief. The checker walks through the same criteria HMRC uses.
FTB Eligibility Checker
Step 1 of 6Are you purchasing a residential property (a dwelling)?
Step-by-Step Eligibility Check
Work through each question in order. If you answer “No” to any question, you do not qualify for first-time buyer relief on this purchase.
Are you purchasing a residential property (a dwelling)?
A dwelling means any property used or suitable for use as a home, including flats, houses, and mixed-use properties with a residential element.
Is the property located in England or Northern Ireland?
Is the purchase price £500,000 or less?
Even £1 above £500,000 eliminates the relief entirely. There is no tapering.
Have you never owned a residential property anywhere in the world?
This includes inherited property, gifted property, property held in trust where you have a beneficial interest, and any leasehold interest of any length.
Is this a sole purchase, or are all joint purchasers also first-time buyers?
One option: consider whether the qualifying buyer could purchase solely in their own name.
Is the property being purchased as your only or main residence?
Buy-to-let purchases, even by genuine first-time buyers, do not qualify for FTB relief.
The Legal Definition
The statutory definition of a first-time buyer under SDLT legislation (Finance Act 2003, s58A as amended) is a person who has never previously acquired a major interest in a dwelling. The detailed guidance in SDLT relief for first time buyers sets out what “major interest” means.
A “major interest” covers:
- A freehold estate in a dwelling
- A leasehold estate in a dwelling with a term of more than 21 years
- Any equivalent ownership in overseas property
- A beneficial interest under a trust arrangement where the dwelling is held for your benefit
Notably excluded from the definition (meaning they do NOT disqualify you):
- Freehold or leasehold interest in commercial property (offices, shops, warehouses)
- Bare land or agricultural land without a residential dwelling
- A leasehold interest of 21 years or fewer (short tenancy agreements)
- A licence to occupy (lodger arrangements)
Disqualification Factors
The following circumstances will permanently disqualify you from first-time buyer status. There are no exceptions or mitigations:
Previously purchased a home
Any residential purchase in England, Scotland, Wales, Northern Ireland or abroad — even if you no longer own it.
Inherited a residential property
Inheriting even a small share of a house or flat counts as acquiring a major interest in a dwelling. Selling the property afterwards does not restore FTB status.
Received property as a gift
A property gifted to you creates the same ownership interest as a purchase. This includes transfers from parents under family arrangements.
Beneficial interest under a trust
If a dwelling is held in trust for your benefit — even without your knowledge initially — you have a beneficial interest counting as ownership.
Overseas property ownership
Owning a holiday home in Spain, an apartment in Dubai, or a studio in New York all disqualify you. Nationality and visa status are irrelevant to this rule.
Joint purchase with non-FTB
If your co-buyer has previously owned property, neither of you qualifies. The relief requires ALL purchasers to be first-time buyers.
Important: Disqualification is permanent
Once you have owned a residential property, you are disqualified from FTB status forever. Selling your home, going through divorce, or moving abroad does not restore your first-time buyer status for SDLT purposes.
Common Scenarios Table
The table below covers the most frequently asked scenarios and whether FTB relief applies:
| Scenario | FTB Relief? | Reason |
|---|---|---|
| Never owned property, sole purchase, price £280,000 | Yes | Qualifies fully — 0% on full price |
| Never owned property, sole purchase, price £420,000 | Yes (partial) | 0% on first £300k, 5% on £120k = £6,000 SDLT |
| Never owned property, sole purchase, price £525,000 | No | Exceeds £500,000 cap — full standard rates |
| Buying jointly with partner who owned abroad | No | Joint purchaser disqualifies entire transaction |
| Inherited 25% share of parent's house (now sold) | No | Inheritance created ownership interest, even if sold |
| Previously owned a garage (no dwelling attached) | Yes | Commercial/non-dwelling property does not disqualify |
| Renting as a tenant for 10 years, no prior ownership | Yes | Renting is not ownership; FTB status intact |
| Beneficial interest under family trust for residential property | No | Beneficial ownership counts as major interest |
| Buy-to-let purchase by genuine first-time buyer | No | FTB relief requires property to be main residence |
| Previously held short lease (15 years) in flat | Yes | Leases of ≤21 years do not count as major interest |
How Much Can You Save?
The FTB relief saves you money by applying a 0% rate to the first £300,000 of your purchase price instead of the standard rates. For properties priced between £300,001 and £500,000, you pay 5% only on the portion above £300,000 rather than the standard 5% band that begins at £250,001.
The maximum possible saving is £5,000, achieved at a purchase price of exactly £500,000.
FTB Rates vs Standard Rates
| Property Price Band | Standard SDLT Rate | FTB SDLT Rate |
|---|---|---|
| £0 – £125,000 | 0% | 0% |
| £125,001 – £250,000 | 2% | 0% |
| £250,001 – £300,000 | 5% | 0% |
| £300,001 – £500,000 | 5% | 5% |
| Above £500,000 | 5% / 10% / 12% | No relief (standard rates) |
Note: Standard rates shown apply from April 2025. The nil-rate threshold returned to £125,000 from 1 April 2025.
Worked Examples
Example 1: £250,000 purchase (sole FTB)
Standard SDLT: £0 (0%) on £125k + £2,500 (2%) on £125k = £2,500
FTB SDLT: £0 (0%) on entire £250k = £0
FTB Saving: £2,500
Example 2: £400,000 purchase (sole FTB)
Standard SDLT: £0 on £125k + £2,500 on £125k + £7,500 on £150k = £10,000
FTB SDLT: £0 on £300k + £5,000 (5%) on £100k = £5,000
FTB Saving: £5,000
Example 3: £500,000 purchase (maximum saving)
Standard SDLT: £0 + £2,500 + £12,500 = £15,000
FTB SDLT: £0 on £300k + £10,000 (5%) on £200k = £10,000
FTB Saving: £5,000 (maximum)
Example 4: £500,001 purchase (just over cap)
FTB SDLT: £0 — no relief available, full standard rates apply
Standard SDLT on £500,001: £0 + £2,500 + £12,500 = £15,000
Loss of relief for just £1 above cap: £5,000 more in SDLT
Use our first-time buyer calculator to see the exact SDLT calculation for your purchase price.
Claiming the Relief
FTB relief is not automatic — it must be claimed on the SDLT return (form SDLT1) submitted to HMRC within 14 days of completion. In practice, your solicitor or conveyancer handles this on your behalf.
You will need to confirm to your solicitor that:
- You have never previously owned a residential property anywhere in the world
- All joint purchasers (if any) also meet the FTB definition
- The property is being purchased as your main residence
- The purchase price does not exceed £500,000
HMRC spot-checks FTB claims
According to MoneyHelper — Stamp Duty, providing false information on an SDLT return carries unlimited penalties. HMRC can investigate past claims and issue assessments for underpaid tax plus interest.
Scotland and Wales
FTB relief as described above applies only in England and Northern Ireland. Other nations have different rules:
- Scotland (LBTT): First-time buyers get an increased nil-rate threshold of £175,000 (versus the standard £145,000). This provides a maximum saving of £600. See our complete FTB guide for full LBTT rates.
- Wales (LTT): There is no first-time buyer relief under Land Transaction Tax. Standard LTT rates apply to all buyers regardless of first-time status.
See our guide on first-time buyer stamp duty for a full comparison across all UK nations.
Frequently Asked Questions
What counts as owning a dwelling for first-time buyer purposes?
Any freehold or leasehold interest in a residential dwelling counts as ownership, including property inherited, received as a gift, or purchased abroad. Commercial property without a residential component does not disqualify you.
Does owning a garage or commercial property disqualify me?
No. Owning a standalone garage, parking space, or purely commercial property does not disqualify you from first-time buyer relief. The disqualification applies to residential dwellings only.
Can I claim first-time buyer relief if my partner has owned before?
No. If purchasing jointly, both purchasers must be first-time buyers. If your partner has previously owned a home, neither of you qualifies for FTB relief on a joint purchase. You could consider buying solely in your own name if you individually qualify.
What is the maximum saving from first-time buyer relief in 2026?
The maximum saving is £5,000. This applies on properties priced between £300,001 and £500,000. Properties above £500,000 receive no FTB relief at all.
Does inheriting a property disqualify me from first-time buyer status?
Yes. Inheriting a residential property (or even a share of one) gives you a beneficial interest and counts as ownership. This disqualifies you from first-time buyer relief even if you sold the inherited property before your current purchase.
For more on joint purchases, see our guide on am I a first-time buyer for stamp duty?
Sources
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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.