Stamp Duty for First-Time Buyers 2025: Reliefs, Thresholds & Examples
How stamp duty works for first-time buyers in England — current thresholds, relief limits, and worked examples for different property prices.
How Stamp Duty Land Tax Works for First-Time Buyers
Stamp Duty Land Tax (SDLT) is a tax paid when you buy a residential property in England or Northern Ireland. First-time buyers in England benefit from a specific relief that reduces or eliminates SDLT on properties up to £500,000. Understanding the thresholds before you start your property search prevents nasty surprises at the point of exchange.
First-Time Buyer SDLT Rates in England (2025/26)
| Property Price | Standard Rate | First-Time Buyer Rate |
|---|---|---|
| Up to £300,000 | 0% | 0% |
| £300,001 – £425,000 | 5% | 0% |
| £425,001 – £500,000 | 5% | 5% |
| Above £500,000 | Standard rates apply | No FTB relief — standard rates |
Worked Examples for First-Time Buyers
£250,000 property — SDLT: £0
Below the £300,000 zero-rate threshold for first-time buyers. No SDLT payable.
£350,000 property — SDLT: £0
First-time buyer relief applies 0% on the full £425,000 zero-rate band. A £350,000 property falls entirely within this band — no SDLT payable.
£425,000 property — SDLT: £0
The entire purchase falls within the first-time buyer zero-rate band (up to £425,000). SDLT = £0.
£475,000 property — SDLT: £2,500
0% on first £425,000 = £0. 5% on £425,001–£475,000 (£50,000) = £2,500. Total: £2,500.
£550,000 property — no FTB relief
Property exceeds £500,000, so standard rates apply: 0% on £250,000 = £0; 5% on £250,001–£550,000 (£300,000) = £15,000. Total: £15,000.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland has its own property purchase tax — LBTT. First-time buyers in Scotland get a relief that raises the zero-rate threshold to £175,000 (versus £145,000 for other buyers). Rates above this are 2% (£175,001–£250,000), 5% (£250,001–£325,000), 10% (£325,001–£750,000), and 12% above £750,000.
Wales: Land Transaction Tax (LTT)
Wales charges Land Transaction Tax with no specific first-time buyer relief. Rates: 0% up to £225,000; 6% on £225,001–£400,000; 7.5% on £400,001–£750,000; 10% on £750,001–£1.5m; 12% above £1.5m.
Common Misconceptions
- "I can share the relief with a non-first-time buyer" — No. If any buyer in the transaction has previously owned a property, the entire transaction loses first-time buyer SDLT relief.
- "The relief applies to any property price" — No. Properties over £500,000 receive no relief at all and are taxed at standard SDLT rates.
- "I only pay SDLT on the amount above the threshold" — Correct — SDLT is tiered. You do not pay the rate on the full purchase price, only on the portion in each band.
- "Buying with a partner who has previously owned means I lose my relief" — If one buyer has previously owned, neither gets first-time buyer relief.
Use our Stamp Duty Calculator to get your exact SDLT figure →