37,000 First-Time Buyers Paid Stamp Duty in 2024-25 Despite Claiming Relief
HMRC statistics published in February 2026 reveal that 1 in 4 first-time buyer relief claimants still paid stamp duty. Why the tiered system means buying above £300,000 always triggers a tax charge.
In this article
Key Takeaways
- 36,999 first-time buyers paid SDLT in 2024-25 despite successfully claiming FTB relief
- 1 in 4 FTB relief claimants ended up paying tax: relief reduced but did not eliminate the bill
- The average FTB stamp duty bill was £4,073 among those who paid
- 13,500 first-time buyers paid over £5,000 in stamp duty
- 1,285 first-time buyers paid the maximum £10,000 (properties priced at exactly £625,000)
- Average FTB purchase price was £311,000 nationally (Halifax data)
- FTB relief is tiered: post-April 2025, 0% on first £300k, 5% on £300k to £500k, no relief above £500k. In 2024-25 (the period covered), the ceiling was £625k
- Average first-time buyer age is 33; average deposit is £61,000
The HMRC Data: 36,999 First-Time Buyers Paid Tax
Key Statistics from HMRC 2024-25
- • 36,999 first-time buyers paid SDLT despite claiming relief
- • Roughly 1 in 4 of all FTB relief claimants paid some tax
- • Average stamp duty bill: £4,073
- • 13,500 buyers paid over £5,000
- • 1,285 buyers paid the maximum £10,000
Approximately 150,000 total FTB relief claims were made in 2024-25. The data, published by HMRC in February 2026 as part of the Annual Stamp Tax Statistics, shows that first-time buyer relief does not work as a simple tax-free threshold. It reduces the bill, but for properties above £300,000, it does not eliminate it.
Why Relief Does Not Mean Zero Tax
FTB relief is a tiered reduction, not a cliff-edge exemption. The nil-rate band (currently £300,000 post-April 2025) means the first £300,000 is always tax-free. But the 5% rate applies to any amount between £300,001 and £500,000. And for properties above £500,000, no relief applies at all.
| Purchase Price | FTB SDLT (post-April 2025) | Notes |
|---|---|---|
| £300,000 | £0 | Within nil-rate band |
| £350,000 | £2,500 | 5% on £50,000 above £300k |
| £400,000 | £5,000 | 5% on £100,000 above £300k |
| £450,000 | £7,500 | 5% on £150,000 above £300k |
| £500,000 | £10,000 | 5% on £200,000 above £300k |
| £510,000 | £20,500 | No relief: standard rates apply |
Who Paid the Most?
13,500 buyers paid over £5,000, meaning they bought properties above £525,000. 1,285 buyers paid the maximum £10,000, buying at exactly £625,000.
London and South East
- • Average FTB property price: approximately £450,000
- • SDLT at £450k: £7,500
- • Only about 11% of homes fall below the £300k FTB threshold
- • Most London FTBs pay £2,500 to £10,000 in stamp duty
Rest of England
- • Average FTB property price: approximately £250,000
- • SDLT at £250k: £0
- • 76% of North East properties fall below the FTB threshold
- • Many buyers in northern regions pay nothing at all
The Average First-Time Buyer in 2024-25
Average Age
33 years
Average Deposit
£61,000
Average Property
£311,000
SDLT at £311k
£550
At the national average of £311,000, a first-time buyer pays £550 in stamp duty (5% on the £11,000 above the £300,000 nil-rate band). This is a modest bill, but it adds to already stretched deposit costs.
Sources: This Is Money, Care Accountancy analysis
What Changed in April 2025
Before April 2025 (October 2022 to March 2025), the nil-rate band was £425,000, with 5% applying on the portion between £425,001 and £625,000. Properties above £625,000 received no FTB relief at all.
From April 2025, the nil-rate band dropped to £300,000, with 5% now applying on £300,001 to £500,000.
This means any FTB buying between £300,001 and £425,000 now pays SDLT for the first time. The change caught an estimated 37% more buyers in the tax net compared to the previous rules.
Calculate Your First-Time Buyer Stamp Duty
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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.