First-Time Buyer Stamp Duty Guide 2025
First-time buyers in England can save thousands on stamp duty through SDLT relief. Scotland also offers LBTT relief, but Wales has no first-time buyer discount. This guide covers the rules, savings, and eligibility for each nation — updated for April 2025.
England & NI (SDLT)
£0 on first £300,000
5% on £300,001–£500,000
Max property price: £500,000
Scotland (LBTT)
£0 on first £175,000
Standard rates above £175,000
No max property price limit
Wales (LTT)
No first-time buyer relief
Same rates for all buyers
Nil-rate band: £225,000 for everyone
First-Time Buyer vs Standard Stamp Duty
How much you pay as a first-time buyer compared to a standard buyer at every price point. Green cells show FTB savings.
| Price | England (SDLT) | Scotland (LBTT) | Wales (LTT) | ||||
|---|---|---|---|---|---|---|---|
| Standard | FTB | Saving | Standard | FTB | Saving | All Buyers | |
| £100,000 | £0 | £0 | — | £0 | £0 | — | £0 |
| £125,000 | £0 | £0 | — | £0 | £0 | — | £0 |
| £150,000 | £500 | £0 | £500 | £100 | £0 | £100 | £0 |
| £175,000 | £1,000 | £0 | £1,000 | £600 | £0 | £600 | £0 |
| £200,000 | £1,500 | £0 | £1,500 | £1,100 | £500 | £600 | £0 |
| £225,000 | £2,000 | £0 | £2,000 | £1,600 | £1,000 | £600 | £0 |
| £250,000 | £2,500 | £0 | £2,500 | £2,100 | £1,500 | £600 | £1,500 |
| £275,000 | £3,750 | £0 | £3,750 | £3,350 | £2,750 | £600 | £3,000 |
| £300,000 | £5,000 | £0 | £5,000 | £4,600 | £4,000 | £600 | £4,500 |
| £325,000 | £6,250 | £1,250 | £5,000 | £5,850 | £5,250 | £600 | £6,000 |
| £350,000 | £7,500 | £2,500 | £5,000 | £8,350 | £7,750 | £600 | £7,500 |
| £375,000 | £8,750 | £3,750 | £5,000 | £10,850 | £10,250 | £600 | £9,000 |
| £400,000 | £10,000 | £5,000 | £5,000 | £13,350 | £12,750 | £600 | £10,500 |
| £425,000 | £11,250 | £6,250 | £5,000 | £15,850 | £15,250 | £600 | £12,375 |
| £450,000 | £12,500 | £7,500 | £5,000 | £18,350 | £17,750 | £600 | £14,250 |
| £475,000 | £13,750 | £8,750 | £5,000 | £20,850 | £20,250 | £600 | £16,125 |
| £500,000 | £15,000 | £10,000 | £5,000 | £23,350 | £22,750 | £600 | £18,000 |
| £525,000 | £16,250 | No relief | — | £25,850 | £25,250 | £600 | £19,875 |
| £550,000 | £17,500 | No relief | — | £28,350 | £27,750 | £600 | £21,750 |
| £575,000 | £18,750 | No relief | — | £30,850 | £30,250 | £600 | £23,625 |
| £600,000 | £20,000 | No relief | — | £33,350 | £32,750 | £600 | £25,500 |
| £625,000 | £21,250 | No relief | — | £35,850 | £35,250 | £600 | £27,375 |
England & Northern Ireland: SDLT First-Time Buyer Relief
From 1 April 2025, the first-time buyer thresholds reverted to their permanent levels after the temporary increases introduced in September 2022 expired:
- £0 stamp duty on the first £300,000 of the purchase price
- 5% on the portion from £300,001 to £500,000
- Maximum property price: £500,000 — if the property costs more than this, you pay standard rates on the entire price with no relief
- Maximum saving: £6,250 (on a £500,000 property, you pay £10,000 instead of £16,250)
Previous temporary rates (Sept 2022 – March 2025): The nil-rate threshold was £425,000 and the property price cap was £625,000. These higher thresholds have now expired.
How the saving is calculated
Under standard SDLT rates, you pay 2% on £125,001–£250,000 and 5% on £250,001–£500,000. As a first-time buyer, you pay nothing up to £300,000 and then 5% above that. The saving comes from avoiding the 2% band entirely and paying nothing on the £250,001–£300,000 slice.
Scotland: LBTT First-Time Buyer Relief
Scotland introduced LBTT first-time buyer relief in June 2018. The relief raises the nil-rate band from £145,000 to £175,000:
- £0 LBTT on the first £175,000 (instead of £145,000)
- Standard LBTT rates apply above £175,000 (2%, 5%, 10%, 12%)
- No property price cap — unlike England, the relief applies at any price
- Maximum saving: £600 (2% on the extra £30,000 nil-rate amount)
The saving is modest compared to England because it only extends the nil-rate band by £30,000 at the 2% rate. However, there is no upper price limit, so even buyers of expensive properties get the £600 discount.
Wales: No First-Time Buyer Relief for LTT
The Welsh Government does not offer any first-time buyer relief for Land Transaction Tax. All buyers pay the same rates regardless of whether they have purchased property before.
However, Wales does have the highest nil-rate band in the UK at £225,000. This means that for properties up to £225,000, buyers in Wales pay no transaction tax at all — which can be better than England’s first-time buyer relief for properties between £125,000 and £225,000, since Wales charges £0 while England charges 2% on the amount above £125,000 for standard buyers.
Eligibility criteria
To claim first-time buyer relief (in England or Scotland), you must meet all of the following:
- You must never have owned a freehold or leasehold interest in a residential property, anywhere in the world
- The property must be your main residence — buy-to-let and investment properties do not qualify
- If buying jointly, all purchasers must be first-time buyers — if one person has owned before, no relief is available
- The relief applies to both freehold and leasehold purchases (including new-build flats)
- In England, the property must cost £500,000 or less
- You must be purchasing a single dwelling (not multiple properties in one transaction)
What counts as “owning” property?
Any legal interest in residential property counts, including:
- Owning a house or flat (even if inherited)
- Owning property abroad
- Holding a share of a property (e.g., through a trust)
However, inheriting a property after your stamp duty purchase does not affect your eligibility retroactively.
Frequently Asked Questions
Who qualifies as a first-time buyer for stamp duty relief? ▼
In England, you must never have owned a freehold or leasehold interest in a residential property anywhere in the world. All buyers in a joint purchase must be first-time buyers. In Scotland, the same principle applies for LBTT first-time buyer relief.
What happens if I buy a property over £500,000 as a first-time buyer in England? ▼
If the property costs more than £500,000, you lose first-time buyer relief entirely and pay standard SDLT rates on the full purchase price. There is no tapering — the relief simply stops at the £500,000 threshold.
Is there first-time buyer relief in Wales? ▼
No. Wales does not offer any first-time buyer relief for Land Transaction Tax (LTT). All buyers pay the same rates regardless of whether they have bought before.
Can I claim first-time buyer relief on a buy-to-let property? ▼
No. First-time buyer relief only applies to properties you intend to live in as your main residence. Buy-to-let and second homes attract the higher rates surcharge instead.
Do I get first-time buyer relief if my partner already owns a property? ▼
No. All buyers named on the transaction must be first-time buyers. If one person in a joint purchase already owns property, neither person can claim the relief.
When did the England FTB thresholds change? ▼
From April 2025, the nil-rate threshold for first-time buyers in England reverted to £300,000 (from the temporary £425,000 threshold). The maximum property price for relief also reverted to £500,000 (from £625,000).