First-time buyer stamp duty relief can save you up to £10,000 on a property purchase in England and Northern Ireland. But the rules changed significantly in April 2025, and they're less generous than they were before. This guide covers the current rates, explains how to check if relief was applied correctly, and tells you what to do if you missed out.
Current FTB rates (from April 2025)
Since 1 April 2025, the first-time buyer SDLT rates in England and Northern Ireland are:
| Purchase price portion | FTB rate | Standard rate |
|---|---|---|
| Up to £300,000 | 0% | 0% (up to £125,000) |
| £300,001 to £500,000 | 5% | 5% (£125,001-£250,000) |
| Above £500,000 | No FTB relief | 5-12% |
The maximum property price for FTB relief is £500,000. If the purchase price exceeds £500,000, FTB relief is not available at all — you pay the full standard rates from the first pound.
Maximum saving
On a £500,000 property, a first-time buyer pays £10,000 in SDLT (5% on £200,000). A standard purchaser would pay £12,500. That's a saving of £2,500. But for properties around the £300,000 threshold, the saving is much larger proportionally — a first-time buyer pays £0 on a £300,000 property, while a standard buyer pays £2,500.
How the rates compare: before and after April 2025
The April 2025 changes reduced the generosity of FTB relief considerably. Here's how SDLT compares at key price points:
| Price | FTB SDLT | Standard SDLT | FTB saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £2,500 | £2,500 |
| £350,000 | £2,500 | £5,000 | £2,500 |
| £400,000 | £5,000 | £7,500 | £2,500 |
| £450,000 | £7,500 | £10,000 | £2,500 |
| £500,000 | £10,000 | £12,500 | £2,500 |
For exact figures for any property price, use our stamp duty calculator.
When FTB relief goes wrong
The rules around first-time buyer status are stricter than most people realise. Here are the most common ways FTB relief can go wrong:
FTB status requires that the buyer has never owned a freehold or leasehold interest in a residential property anywhere in the world. If one buyer in a joint purchase previously owned a flat in Sydney or an apartment in Paris, both buyers are disqualified from FTB relief — even if the UK buyer has never owned.
If you previously held a leasehold interest in a residential property — even a short-term lease of 7 years or more — you are not a first-time buyer. This catches people who previously owned flats (most of which are leasehold), even if they later sold them.
If you inherited a property and it was registered in your name, you may not qualify as a first-time buyer — even if you never lived in it and subsequently sold it. The test is whether you acquired a "major interest" in a dwelling, not whether you occupied it.
Sometimes the error works in your favour — or rather, against your favour. If your solicitor didn't apply FTB relief when you were entitled to it, you've overpaid SDLT and can claim the difference back.
How to check if relief was applied
Your SDLT5 certificate — the document HMRC sends after processing your stamp duty return — shows the rate table that was applied to your purchase. If the certificate shows that standard rates were used and you believe you qualified as a first-time buyer, you may be owed a refund.
Check for the following:
- The SDLT amount shown on your SDLT5 — does it match FTB rates or standard rates?
- Whether "first-time buyer relief" is noted on the return
- The total tax paid compared to what the FTB rate would produce
If you don't have your SDLT5, ask your solicitor — they should have a copy in your file. You can also check by using our stamp duty calculator with the FTB option selected and comparing the result to what you actually paid.
Claiming FTB relief retrospectively
If FTB relief wasn't applied and you were entitled to it, you can correct this:
Within 12 months + 14 days
Amend the original SDLT return to claim FTB relief. This is the quickest route and is usually processed within 2-4 weeks.
Within 4 years
Claim overpayment relief by writing to HMRC. Processing takes 15-30 working days. This is the route for most retrospective claims.
Chattels for first-time buyers
Even with FTB relief, if you paid more than £300,000 for your property, you paid 5% SDLT on the excess above £300,000. If that excess includes chattels — carpets, curtains, white goods — you've overpaid on those items.
Worked example: £450,000 FTB purchase
FTB SDLT on £450,000: 5% on £150,000 = £7,500
Chattels valued at: £8,000
FTB SDLT on £442,000: 5% on £142,000 = £7,100
Potential refund: £400
Not life-changing, but still worth a short letter to HMRC — or a 2-minute check on our estimator.
The chattels opportunity applies regardless of whether FTB relief was correctly applied. Even if your solicitor got the FTB relief right, they almost certainly didn't deduct chattels from the purchase price. Read more about what qualifies as a chattel.
Frequently asked questions
Do I qualify as a first-time buyer for stamp duty relief?
You qualify if you have never owned a freehold or leasehold interest in a residential property anywhere in the world. This includes properties owned abroad, inherited properties registered in your name, and short-term leasehold interests.
What if my partner has owned property before?
If you are buying jointly, both buyers must be first-time buyers to qualify. If one buyer has previously owned a property, neither buyer qualifies — even if the other has never owned. This is one of the most common reasons FTB relief is incorrectly denied or claimed.
Can I claim FTB relief if my solicitor missed it?
Yes. You can amend your SDLT return within 12 months and 14 days of filing, or claim overpayment relief within 4 years of the effective date. The relief will be applied and you'll receive a refund of the difference.
Do I pay stamp duty on a shared ownership home?
With shared ownership, you can choose to pay SDLT on the full market value or just on the share you are purchasing. FTB relief can apply, but the rules are complex — particularly for staircase transactions. If the full market value exceeds £500,000, FTB relief is not available.
Calculate your stamp duty
Our free calculator includes first-time buyer relief. See exactly how much SDLT you'll pay.