A first purchase usually means the removal quote is only one of several bills that land close to completion day. Stamp Duty Land Tax (SDLT) is often the largest, and for first-time buyers a relief can remove much or all of it. This article summarises the current GOV.UK guidance on how First-Time Buyers’ Relief works. It applies to property in England and Northern Ireland only: Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, both with their own rates. It is general information, not tax advice.
Who counts as a first-time buyer
GOV.UK says relief is available only where you and anyone else you are buying with are all first-time buyers of a residential property. A couple where one partner has owned a home before therefore cannot claim, even if the other never has. The guidance also sets two conditions: the property must be intended as the buyer’s main residence, and the purchase price must be no more than £500,000.
The rates for a first home from 1 April 2025
For a first home bought on or after 1 April 2025, GOV.UK gives these rates:
- 0% on the first £300,000;
- 5% on the portion from £300,001 to £500,000.
GOV.UK’s worked example is a £500,000 purchase, which produces SDLT of £10,000. If the price is even £1 over £500,000, the relief is lost completely and the standard rates apply to the whole price. The standard rates for a single residential property are 0% up to £125,000, 2% on the next £125,000, 5% on the portion from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. Anyone who bought their first home before 1 April 2025 was subject to different relief rates, so figures quoted in older articles or by older calculators can be out of date.
Shared ownership
GOV.UK says first-time buyers of qualifying shared ownership homes can also claim the relief where the property is intended as a main residence and its market value is £500,000 or less. The relief applies to the rent payments too, so no SDLT is due on the rent. The claim needs either a market value election or a choice to pay SDLT in stages when the lease is granted. A housing association or the buyer’s conveyancer explains which route applies to a particular scheme.
When first-time relief does not help
Three situations sit outside the relief, according to the residential rates guidance:
- Prices above £500,000. The standard rates apply to the entire price.
- Additional properties. A buyer who will own more than one residential property usually pays 5% on top of the standard rates. A purchase that leaves the buyer owning two residential properties falls into this category.
- Non-UK residents. A buyer not present in the UK for at least 183 days in the 12 months before purchase usually pays a 2% surcharge in England and Northern Ireland, in addition to any other rate that applies, including the first-time buyer rates.
Claiming the relief
The relief is not automatic. GOV.UK says it is claimed by entering relief code 32 in the SDLT return, which a conveyancer normally files. Buyers should confirm in writing that the claim will be made, and that the return is filed inside the statutory window, which the site’s guide to the SDLT filing deadline explains. HMRC also provides an online SDLT calculator on GOV.UK for checking a solicitor’s figure.
Fitting SDLT into a moving budget
The SDLT bill falls due around the same time as the final removal payment. Buyers can plan for it as follows:
- Get the SDLT figure from the conveyancer before the removal booking is confirmed, so that a deposit and final payment are not competing with a tax bill.
- Check whether the purchase price sits close to the £300,000 or £500,000 boundaries, because a small price change near £500,000 can change the bill by thousands of pounds.
- Use the moving house budget guide to place removals, storage and cleaning alongside the tax and legal fees.
Common questions
Does the relief apply to a buy-to-let purchase?
No. GOV.UK ties the relief to a property the buyer intends to occupy as a main residence.
Does it apply in Scotland or Wales?
No. SDLT applies in England and Northern Ireland. Scotland and Wales use their own taxes, and this article does not cover their rates.
What if I am buying with a parent who already owns a home?
GOV.UK says all buyers on the purchase must be first-time buyers, so the relief cannot be claimed in that case.
The bottom line
For a first home in England or Northern Ireland costing up to £500,000 and bought from 1 April 2025, the first £300,000 carries no SDLT and the remainder is taxed at 5%. Above £500,000 the relief disappears entirely, and every buyer on the purchase must qualify. Confirm the claim with the conveyancer, then set the tax figure beside the removal quote before committing to a moving date.