First-time buyer stamp duty relief has existed in various forms since 2010, but the parameters have changed repeatedly. The version that was in force from September 2022 to March 2025 was unusually generous: zero SDLT up to £425,000, then 5% on the slice up to £625,000, no relief above. From 1 April 2025, the relief shrank: the nil-rate threshold fell to £300,000, the relief cap fell to £500,000, and the 5% slice runs from £300,001 to £500,000. For many first-time buyers in southern England, this represented a meaningful additional cost.
The current FTB rates
For first-time buyers in England and Northern Ireland purchasing a property up to £500,000:
Up to £300,000: 0% SDLT (full nil-rate).
£300,001 to £500,000: 5% on the slice above £300,000.
Above £500,000: no FTB relief — you pay standard SDLT rates on the entire purchase price.
The cliff edge at £500,000
Buying at £500,000 → £10,000 SDLT (5% on £200,000). Buying at £500,001 → £15,000 SDLT (standard rates kick in: £2,500 on the 2% band + £12,500 on the 5% band). A £1 increase in price costs £5,000 in extra tax — the kind of cliff edge the 2014 slice reform was supposed to eliminate, except it still applies at the FTB cap.
Worked examples
£300,000 FTB purchase: £0 SDLT. Compare: standard buyer pays £5,000.
£350,000 FTB purchase: £2,500 (5% on £50,000). Compare: standard buyer pays £7,500.
£400,000 FTB purchase: £5,000 (5% on £100,000). Compare: standard buyer pays £10,000.
£450,000 FTB purchase: £7,500 (5% on £150,000). Compare: standard buyer pays £12,500.
£500,000 FTB purchase: £10,000 (5% on £200,000). Compare: standard buyer pays £15,000.
£500,001 FTB purchase: £15,001 (no relief; standard rates apply). Avoid this cliff edge if you can.
Who qualifies as a first-time buyer
The rule is strict: you must never have owned a major interest in a dwelling anywhere in the world — that means no freehold, no leasehold over 21 years, no shared ownership, no inherited share. Property gifted to you, even briefly, counts. Property held in trust for you counts. Joint purchases require all purchasers to be first-time buyers — one previous-owner spouse disqualifies the couple.
Common surprises: people who held a share in their parents' house under a trust arrangement are sometimes disqualified; people who briefly owned a property abroad before moving to the UK are usually disqualified; people who inherited a property and then sold it years ago are usually disqualified.
Other conditions
The property purchased must be intended as the buyer's only or main residence. You cannot use FTB relief on a buy-to-let. The maximum purchase price for relief is £500,000 — above that, no relief at all (not just a tapered amount).
Practical advice for 2025-2026 first-time buyers
If you're close to £500,000, negotiate down. A £500,001 purchase costs £5,000 more SDLT than a £500,000 purchase. Find £1 of price flexibility.
Check for chattels. If the seller is including any meaningful chattels (carpets, white goods, free-standing furniture), make sure their value is separately stated and deducted from the "property" price for SDLT purposes. On a £400,000 purchase with £4,000 of chattels, that's £200 less SDLT.
Make sure you actually qualify. If you're buying jointly, both parties need to be FTBs. If you inherited a property share years ago, you may not qualify. Get this checked with your solicitor before relying on the relief.
If you completed just after April 2025, check whether anything else could be reclaimed. You can't recover the threshold change itself, but chattels and other reliefs may still be claimable.
If you completed during 2025 expecting the higher threshold
Many first-time buyers exchanged in late 2024 or early 2025 expecting to complete under the £425,000 threshold, only to slip into April and face the lower rates. The threshold change itself isn't reversible — but if your solicitor's SDLT return failed to deduct chattels, claim available reliefs, or got anything else wrong, an overpayment claim may still be possible.
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