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Stamp Duty for first-time buyers (UK): relief rules and worked examples

First-time buyers in England and Northern Ireland may pay reduced SDLT if eligible. Learn the rules in plain English with worked examples.

Published: 27/03/2026 • Last verified: 27/03/2026

Summary

If you’re buying your first home in England or Northern Ireland, you may be able to claim first‑time buyers’ relief on Stamp Duty Land Tax (SDLT). That can reduce the tax you pay — sometimes to £0 — but it depends on:

  • whether you meet the first‑time buyer conditions,
  • the purchase price (there is a cap for relief in the rules used by this site),
  • and whether you’re buying alone or with someone else.

Use the SDLT calculator for exact estimates:

This guide is general information only. If you need certainty for a transaction, check GOV.UK guidance or speak to a qualified professional.

Key terms (quick definitions)

  • SDLT: the property transaction tax for England and Northern Ireland. /glossary/sdlt/
  • First-time buyer relief: a reduced SDLT calculation for eligible first-time buyers (subject to conditions and price limits).
  • Additional property: buying an extra property can trigger higher rates (different rules). /glossary/additional-property/

How it works

Step 1: Confirm you’re in the right system

This guide is about SDLT (England and Northern Ireland). Scotland and Wales have different property transaction taxes.

Step 2: Check the core eligibility idea

At a high level, first‑time buyer relief is designed for people who have not previously owned a residential property interest and who intend to live in the home as their main residence.

If you’re buying with someone else, a key practical point is:

  • everyone buying the home must meet the first‑time buyer conditions, otherwise relief usually won’t apply.

Step 3: Understand the price cap and bands used for this guide’s examples

Abodewise’s calculator engine uses first‑time buyer relief bands for England/NI (effective from 1 April 2025 in our current policy tables):

  • 0% up to £300,000
  • 5% on the portion from £300,000 to £500,000
  • relief not applied above £500,000 (standard rates used)

Always check GOV.UK for the current official guidance and any special cases.

Worked examples

These examples use the bands described above and are illustrative.

Example 1: £250,000 first home (eligible)

Price: £250,000

All of the price is in the 0% band (for first‑time buyers), so:

  • SDLT estimate: £0

Example 2: £350,000 first home (eligible)

Price: £350,000

  • 0% on the first £300,000 → £0
  • 5% on the remaining £50,000 → (£50,000 × 0.05 = £2,500)

SDLT estimate:

  • £2,500

Example 3: £500,000 first home (eligible)

Price: £500,000

  • 0% on the first £300,000 → £0
  • 5% on the remaining £200,000 → (£200,000 × 0.05 = £10,000)

SDLT estimate:

  • £10,000

Example 4: £600,000 purchase (relief not applied in this calculator)

In Abodewise’s calculator logic, first‑time buyer relief is not applied above the £500,000 cap, so standard rates are used for the estimate.

Using standard England/NI residential rates (effective from 1 April 2025 in our policy tables):

  • 0% on £0 to £125,000 → £0
  • 2% on £125,000 to £250,000 → (£125,000 × 0.02 = £2,500)
  • 5% on £250,000 to £600,000 → (£350,000 × 0.05 = £17,500)

SDLT estimate:

  • £20,000

Common mistakes

  • Assuming it applies in Scotland/Wales: those nations have different property taxes.
  • Buying with someone who has owned before: joint purchases can lose relief if one buyer is not a first-time buyer.
  • Forgetting overseas ownership counts: first‑time buyer status can be affected by property ownership anywhere.
  • Misunderstanding the price cap: relief can be limited by the purchase price.
  • Confusing “additional property” rules: higher rates can apply in other scenarios (separate rules).
  • Treating the calculator as legal advice: it’s an estimate — always check your specific case.

What to do next

Related glossary:

Sources