First-Time Buyer Stamp Duty: Complete Example
A fully eligible first-time buyer can save thousands on stamp duty. This guide walks through the exact rates, a step-by-step calculation at £350,000, and the eligibility rules you must satisfy to claim the relief.
Last verified: April 2026
Key Takeaways
- •FTB relief gives 0% on the first £300,000 and 5% on £300,001–£500,000.
- •Above £500,000 there is NO relief — standard rates apply from band 1.
- •Every buyer on a joint purchase must be a first-time buyer — one prior owner disqualifies all.
- •You must not own property anywhere in the world, at any time.
- •At £350,000 a FTB pays £2,500 versus £7,500 for a standard buyer — a saving of £5,000.
In this article
What is First-Time Buyer Relief?
First-time buyer relief is a statutory SDLT concession that reduces or eliminates the tax payable when a qualifying buyer purchases their first residential property. The relief was substantially enhanced in September 2022 and remains in force as of April 2025.
Under the relief, the nil-rate threshold is raised from the standard £125,000 to £300,000. This means the first £300,000 of a qualifying purchase is completely exempt from SDLT. On the portion between £300,001 and £500,000, a flat 5% rate applies. Above £500,000, the relief disappears entirely and standard rates apply from the first pound.
Statutory basis: The relief is provided by Finance Act 2003, s57AA, as amended. It applies to transactions with an effective date on or after 23 September 2022.
Eligibility Criteria
To claim first-time buyer relief, all of the following conditions must be met:
- Every buyer on the transaction must be a first-time buyer — this is not a per-person test on a joint purchase.
- No buyer must have previously owned a residential property anywhere in the world, whether in the UK or overseas.
- The property being purchased must be residential (not mixed-use or commercial).
- The purchase price must not exceed £500,000. Above this figure, no relief applies at all.
- The purchase must be of the major interest in land (freehold or leasehold with at least 21 years remaining).
Joint purchases: Both (or all) buyers must satisfy the eligibility conditions. If one buyer has ever owned property — even decades ago, even overseas — the entire purchase loses the relief.
Rate Comparison
The table below shows SDLT payable under standard rates versus FTB relief at common purchase prices. The saving is the difference between the two columns.
| Purchase Price | FTB Pays | Standard Pays | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
Above £500,000: FTB relief disappears entirely. A first-time buyer purchasing at £510,000 pays the same SDLT as any other buyer — standard rates applied from the first pound, with no partial relief for the £500,000 portion.
Worked Example at £350,000
Alex and Jamie are both first-time buyers purchasing a flat in Birmingham for £350,000. Neither has ever owned property. Here is exactly how their SDLT is calculated.
First-Time Buyer Calculation
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 – £300,000 | 0% | £300,000 | £0 |
| £300,001 – £350,000 | 5% | £50,000 | £2,500 |
| Total FTB SDLT | £2,500 | ||
Standard Rate Calculation (for comparison)
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 – £125,000 | 0% | £125,000 | £0 |
| £125,001 – £250,000 | 2% | £125,000 | £2,500 |
| £250,001 – £350,000 | 5% | £100,000 | £5,000 |
| Total Standard SDLT | £7,500 | ||
FTB Pays
£2,500
Standard Pays
£7,500
FTB Saving
£5,000
Disqualifying Factors
The following situations will disqualify a buyer from FTB relief. If any apply, standard rates apply in full.
Spouse or civil partner previously owned
If your spouse or civil partner has previously owned a property (even before you met), you lose FTB status as a couple from the date of marriage or civil partnership.
Inherited property
Inheriting a property — even a share of one — counts as ownership. If you received a beneficial interest in a property through an estate, you are not a first-time buyer.
Property held in trust
If you are a beneficiary of a trust that owns residential property, you are treated as owning that property for FTB purposes.
Overseas prior ownership
A property in Spain, Australia, or anywhere else in the world counts. There is no geographic exclusion for overseas property.
Purchase price above £500,000
If the purchase price is a single penny above £500,000, the relief is completely unavailable — not reduced, but eliminated entirely.
Timing note: FTB status is assessed at the effective date of the transaction — usually completion day. If your circumstances change between exchange and completion (for example, you marry someone who previously owned property), your eligibility must be re-assessed at completion.
Frequently Asked Questions
My partner owned a property abroad. Do I get FTB relief?
No — any joint buyer with prior ownership disqualifies the whole purchase. FTB relief requires every buyer on the transaction to be a genuine first-time buyer, regardless of where the previously-owned property was located.
Does FTB relief apply if the property costs £510,000?
No — above £500,000, standard rates apply from band 1 with no relief whatsoever. There is no partial relief for the first £500,000 portion when the total price exceeds the ceiling.
We rented before — does that affect FTB status?
No. Renting does not affect eligibility for first-time buyer relief. Only prior property ownership counts. You can have rented for decades and still qualify, provided you have never held a legal or beneficial interest in any residential property.
When is FTB status determined?
FTB status is assessed at the effective date of the transaction, which is usually the date of completion rather than exchange of contracts. If your circumstances change between exchange and completion, the position at completion governs.
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.
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