HomeBuyingCosts Guide

First-Time Buyer Stamp Duty Relief Explained (2026/27)

Written and reviewed by James Whitfield · Updated 2026-02-17 · 6 min read

Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology

Use this guide to verify relief assumptions before exchange and compare scenarios if your status might change.

Contents ▾
  1. 1. What it saves you, price by price
  2. 2. Who actually counts as a first-time buyer
  3. 3. The £500,000 cliff edge
  4. 4. How to claim it

Quick answer

First-time buyer stamp duty relief in England and Northern Ireland means you pay 0% SDLT on the first £300,000 of a qualifying purchase, then 5% on the portion between £300,000 and £500,000.4 If the price is above £500,000 you get no relief and pay the standard rates. Every buyer must be a first-time buyer who intends to live in the property. Scotland's LBTT lifts the nil-rate band to £175,000 for first-time buyers,2 while Wales (LTT) has no separate first-time buyer relief.3

Key takeaways

  • No SDLT up to £300,000 for eligible first-time buyers.2
  • 5% on the slice from £300,001 to £500,000.2
  • Relief is worth up to £5,000 — and £0 once the price tops £500,000.2
  • Every buyer on the deal must be a genuine first-time buyer.2
  • Scotland and Wales run separate first-time buyer rules.45

First-time buyer relief means you pay no stamp duty on the first £300,000 of a home, then 5% on anything between £300,000 and £500,000. Buy for £500,000 or less and it's worth up to £5,000 off.2 Pay a pound over £500,000 and the relief vanishes completely — you're back to standard rates on the whole price.

Who qualifies, exactly how much it saves at different prices, the cliff-edge at £500,000, and the joint-buyer trap that quietly disqualifies people. England and Northern Ireland rules; Scotland and Wales have their own first-time buyer schemes.

Worked examples — home mover typical fees

Price England/NI tax Scotland tax Wales tax
£300,000 £5,000 £4,600 £4,500
£500,000 £15,000 £23,350 £18,000
£750,000 £27,500 £48,350 £36,750

What it saves you, price by price

The relief is generous in the middle of the range and brutal at the top. Here's what a first-time buyer actually pays versus a home mover:

Price Home mover SDLT First-time buyer SDLT You save
£250,000 £2,500 £0 £2,500
£300,000 £5,000 £0 £5,000
£400,000 £10,000 £5,000 £5,000
£500,000 £15,000 £10,000 £5,000
£510,000 £15,500 £15,500 £0

At £510,000 the relief has gone — a first-time buyer pays the same as a mover. That £10,000 over the cap costs a first-time buyer the full £5,000 of relief.2

The pattern people miss: the saving is capped at £5,000, and it's the same £5,000 whether you buy at £300,000 or £500,000. It's not a percentage that keeps growing.

Who actually counts as a first-time buyer

The bar is higher than most assume. To qualify, you (and everyone buying with you) must never have owned a residential property anywhere in the world — not in the UK, not abroad, not inherited, not a share.

That last part is where people come unstuck. If your partner once inherited a quarter-share of a relative's house, or owned a flat overseas years ago, the whole purchase loses relief — even if you personally are a first-timer. Relief is all-or-nothing across the buyers.2

Buying with a parent as a guarantor or joint owner? If the parent has owned before, you lose both the relief and often trigger the 5% second-home surcharge. A sole purchase, or a properly structured guarantor mortgage, usually works better.

The £500,000 cliff edge

There's no taper above £500,000. At £500,000 a first-time buyer pays £10,000; at £500,001 they pay the full standard rate on the whole price — the same as anyone else.2

If you're negotiating near the line, getting under £500,000 is worth real money. It's one of the few points in the whole system where a small price change flips a rule rather than nudging a band.

How to claim it

You don't apply in advance. You tell your conveyancer you're a first-time buyer, they claim the relief on the SDLT return at completion, and the lower figure appears on your completion statement.6

Say it early. Confirming your status in writing before exchange means the completion funds are calculated correctly and there's no scramble in the final week.

Use the calculator for this topic

Open calculator Stamp duty on £300,000 Cost to buy £450,000 First-time buyer £300,000 Second-home £450,000 Moving-home £300,000 All guides London page Manchester page County pages Sources and assumptions Edinburgh page

Frequently asked questions

How much can first-time buyer relief save me?+

Up to £5,000 in England or Northern Ireland, on purchases of £500,000 or less. Above £500,000 the relief is £0.2

What's the maximum price for first-time buyer relief?+

£500,000. Buy for more and standard rates apply to the whole price — there's no partial relief.2

Can I get relief if I buy with someone who has owned before?+

No. Every buyer on the purchase must be a first-time buyer. One previous owner on the deal disqualifies everyone.2

Does owning a property abroad count?+

Yes. Any prior residential property ownership anywhere in the world — including inherited shares — means you're not a first-time buyer.2

Do first-time buyers in Scotland and Wales get the same deal?+

No. Scotland's LBTT and Wales's LTT run their own first-time buyer rules with different thresholds.45

How do I actually claim it?+

You don't apply separately — your solicitor claims it on the SDLT return at completion. Just confirm your first-time status with them before exchange.6

Sources & references

Official

The figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.

  1. GOV.UK — SDLT residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates Current band-by-band residential SDLT rates for 2026/27.
  2. GOV.UK — First-time buyers' SDLT relief www.gov.uk/stamp-duty-land-tax/residential-property-rates#first-time-buyers Relief: nil-rate to £300,000, 5% to £500,000, none above £500,000.
  3. GOV.UK — Higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property The 5% additional-property surcharge and 36-month refund rules.
  4. Revenue Scotland — Land and Buildings Transaction Tax revenue.scot/taxes/land-buildings-transaction-tax Scottish LBTT residential rates and the Additional Dwelling Supplement.
  5. Welsh Revenue Authority — Land Transaction Tax rates www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT residential rates and bands.
  6. GOV.UK — Pay Stamp Duty Land Tax www.gov.uk/pay-stamp-duty-land-tax Filing the SDLT return and paying within 14 days of completion.

Verified against published UK government guidance. See also Methodology and Editorial standards.

Related guides

What Is Stamp Duty? UK Rates & Bands 0%–12% (2026/27) When Do You Pay Stamp Duty? 14 Days After Completion (2026/27) Second-Home Stamp Duty Surcharge Replacing Your Main Residence and Refunds Conveyancing Fees UK 2026: Typical Cost £1,200–£2,500 All-In House Survey Costs Explained

Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.

Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us