Do First-Time Buyers Pay Stamp Duty? The Relief Explained

First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax on a home costing up to £300,000. From £300,001 to £500,000 they pay 5% on the part of the price above £300,000. Above £500,000 the relief does not apply. These are the rates for purchases completing from 1 April 2025.

Who counts as a first-time buyer

You count as a first-time buyer if you have never owned a home, on your own or with anyone else, in the UK or anywhere else in the world. HMRC's test is whether you have previously acquired "a major interest in a dwelling", which covers a freehold or a leasehold home.

Two more conditions apply:

• Everyone buying must qualify. If you buy with someone who has owned a home before, neither of you gets the relief.
• You must live there. The home has to be your only or main residence. A buy-to-let does not qualify.

The rates for first-time buyers

• Up to £300,000: 0%
• £300,001 to £500,000: 5%
• Above £500,000: no relief, so the standard rates apply to the whole price

What you pay at each price

What a first-time buyer pays with the relief, and what a home mover pays at the standard rates:

• £250,000: £0 with the relief, £2,500 at the standard rates
• £350,000: £2,500 with the relief, £7,500 at the standard rates
• £450,000: £7,500 with the relief, £12,500 at the standard rates
• £500,000: £10,000 with the relief, £15,000 at the standard rates

Our stamp duty calculator shows the figure for your price, band by band.

Above £500,000

At £500,001 the relief is lost in full. A first-time buyer then pays the standard rates on the whole price: £15,000, against £10,000 at £500,000. If your offer is near £500,000, work out both figures before you agree a price.

Buying with someone who has owned a home

If one buyer has owned a home before, the relief is not available on the purchase, even if the other buyer has never owned one. The standard rates apply.

If that buyer will still own their old home after completion, the higher rates for additional homes may apply instead, and married couples and civil partners are treated as one buyer for that test, unless they are permanently separated. Our second home stamp duty calculator explains when the higher rates apply.

Shared ownership

First-time buyers' relief can apply to a shared ownership purchase when the full market value of the home is £500,000 or less. It applies whether you make a market value election, paying once on the full value, or pay in stages on the share you buy. The relief also covers the rent, so no Stamp Duty is due on it. The calculator shows both ways of paying side by side.

How the relief is claimed

You do not apply for it separately. The relief is claimed on the Stamp Duty Land Tax return, using relief code 32, and the return still has to be filed even when there is no tax to pay. When we act on your purchase in England, we file the return for you.

HMRC can charge a penalty for claiming a relief you are not entitled to. Tell us at the start if any buyer has ever owned a home, here or abroad, so the return is right.

Scotland and Wales have their own property taxes, with their own rules. This guide covers England and Northern Ireland.

Where to read more

• Conveyancing for first-time buyers: our fees, with a worked example including Stamp Duty
• Stamp Duty explained: the rates for home movers and second homes, and when and how you pay
• The hidden costs of buying a house: every cost on top of the price, and when each is paid

Sources

• First-time buyers' relief (GOV.UK, including shared ownership and relief code 32)
• Residential property rates (GOV.UK)
• Who is a first-time buyer, HMRC manual SDLTM29811
• Shared ownership and first-time buyers, HMRC manual SDLTM29875

Rates checked on GOV.UK on 20 October 2026. This is general information about Stamp Duty Land Tax in England and Northern Ireland, not tax advice on your purchase.