FTB Partial Relief: How It Works Between £300,000 and £500,000
Step-by-step calculations showing exactly how partial relief reduces your stamp duty bill.
Key Takeaways
- Between £300,001 and £500,000, FTB partial relief means you pay 5% only on the amount above £300,000, not on the full price
- At £350,000, an FTB pays £2,500 SDLT. A standard buyer pays £7,500. The saving is £5,000
- At £400,000, an FTB pays £5,000 SDLT. A standard buyer pays £10,000. The saving is £5,000
- At £450,000, an FTB pays £7,500 SDLT. A standard buyer pays £12,500. The saving is £5,000
- At £500,000 exactly, an FTB pays £10,000 SDLT. A standard buyer pays £15,000. The saving is £5,000
- The hard cutoff above £500,000 means a property at £500,001 is taxed at full standard rates on the entire price
- The maximum FTB saving under partial relief is £5,000 (the difference between paying 5% on £100k vs standard rates on the same portion)
- April 2025 changes confirmed the £300,000 nil-rate and £500,000 cap as permanent thresholds
In this article
How Partial Relief Works
When a first-time buyer purchases a property between £300,001 and £500,000, the relief does not disappear entirely. Instead, it works differently from the full nil-rate band below £300,000.
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 use 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% |
Compare this with standard SDLT rates (for non-FTB buyers), which apply their own band structure. The key difference is that FTB partial relief gives you a nil-rate band on the first £300,000 even when the overall price is above that threshold. See our first-time buyer vs standard buyer comparison to see how much you save.
To check whether you qualify for partial relief in the first place, see the FTB relief eligibility criteria guide.
Step-by-Step Worked Examples
The following 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 |
| £400,001 - £925,000 | 5% | £0 (only up to £400k) |
| 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 |
| £500,001 - £925,000 | 5% | £0 (up to £500k) |
| Total Standard SDLT | £12,500 | |
FTB saving at £500,000: £2,500
Use the first-time buyer calculator to run the numbers for any price within the qualifying range.
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). This cliff edge is something buyers and estate agents need to be aware of when negotiating purchase prices.
Above £500,000, the FTB buyer and a standard buyer pay exactly the same SDLT. The relief is simply absent. For buyers in this price range, the current stamp duty rates 2026 page shows the full standard rate bands.
FTB vs Standard Rate Comparison
The table below compares total SDLT payable for first-time buyers and standard buyers at several price points across the full spectrum.
| Purchase Price | FTB SDLT | Standard SDLT | FTB Saving |
|---|---|---|---|
| £250,000 | £0 | £0 | £0 |
| £300,000 | £0 | £2,500 | £2,500 |
| £350,000 | £2,500 | £5,000 | £2,500 |
| £400,000 | £5,000 | £7,500 | £2,500 |
| £450,000 | £7,500 | £10,000 | £2,500 |
| £500,000 | £10,000 | £12,500 | £2,500 |
| £500,001 | £12,500 (no relief) | £12,500 | £0 |
| £600,000 | £20,000 (no relief) | £20,000 | £0 |
Impact of April 2025 Changes on FTB Thresholds
The April 2025 stamp duty changes affected the standard nil-rate threshold, which reverted from £250,000 back to £125,000. However, the FTB nil-rate threshold of £300,000 was confirmed as a permanent threshold and was not subject to the reversion.
This means that FTB relief became more valuable relative to standard rates from April 2025. A first-time buyer purchasing at £300,000 now saves £3,750 compared to before April 2025, when the standard nil-rate band was also £250,000 and the gap between FTB and standard rates was smaller.
Standard Nil-Rate Reverted from April 2025
Standard rates now apply 0% on the first £125,000 (down from £250,000), then 2% between £125,001 and £250,000, then 5% above £250,000. The FTB nil-rate remains at £300,000, making the FTB saving larger than before April 2025 for properties between £125,000 and £300,000.
For a full breakdown of what changed in April 2025, see the April 2025 stamp duty changes guide.
Tips for Buyers Near the Threshold
Negotiating Near £300,000
If a property is priced at £305,000, consider whether negotiating down to £300,000 is viable. Doing so would save you £250 in SDLT (the 5% on the £5,000 above £300k) plus position you at the maximum nil-rate benefit. At this price level, savings are modest.
The Critical Zone Around £500,000
If a property is priced at £502,000, negotiating down to £500,000 would save you £2,600 in SDLT (the difference between paying £12,600 at £502k with no relief vs £10,000 at £500k with partial relief). This is a meaningful saving and worth factoring into negotiations.
Fixtures, Fittings, and Chargeable Consideration
SDLT is calculated on the "chargeable consideration," which includes the total cash price. In some cases, furniture, fixtures, or fittings can be valued separately and excluded from the SDLT calculation, which could bring a price near £500,000 below the threshold. However, any such apportionment must be genuinely negotiated and commercially reasonable: HMRC takes a dim view of artificial price reductions.
Frequently Asked Questions
If my purchase is at £500,000 exactly, do I get partial relief?
Yes. The partial relief applies to all purchases up to and including £500,000. At exactly £500,000, you pay 0% on the first £300,000 and 5% on the remaining £200,000, giving a total of £10,000. A standard buyer at £500,000 would pay £12,500.
Does partial relief apply automatically, or do I need to claim it?
You must claim it on your SDLT return using relief code 32. Your solicitor or conveyancer will normally do this as part of the conveyancing process. The relief is not applied automatically. For full details, see the FTB relief claiming process guide.
Is partial FTB relief better than no relief at all above £500,000?
This is a comparison that does not apply in practice: either your price qualifies for partial relief (up to £500,000) or it does not (above £500,000). If your price is above £500,000, there is no FTB relief to apply. You simply pay standard rates on the whole amount.
What if the property price is agreed at £500,000 but the seller wants me to pay for some extra items?
The SDLT chargeable consideration includes all cash paid in connection with the purchase. If you separately pay for items that form part of the overall deal, HMRC could treat the total as exceeding £500,000 and deny the partial relief. Structure any agreements carefully and ensure your solicitor is aware of all payments made in connection with the transaction.
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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.
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