First-Time Buyer Stamp Duty 2025

Relief rates, eligibility rules, and worked examples — everything you need to know about SDLT as a first-time buyer.

Rates effective from 1 April 2025

First-time buyer SDLT rates

From 1 April 2025, first-time buyers purchasing a property worth up to £500,000 pay:

Band	Rate
£0 – £300,000	0%
£300,001 – £500,000	5%

Important: If the property costs more than £500,000, first-time buyer relief does not apply at all. You pay standard rates on the full purchase price.

Who counts as a first-time buyer?

HMRC's definition is strict. You qualify as a first-time buyer if you have never owned a freehold or leasehold interest in a residential property, anywhere in the world. This includes:

Not eligible if you have previously owned: property you bought and sold before this purchase
Not eligible if you have previously owned: inherited property (even a small share)
Not eligible if you have previously owned: property owned abroad
Not eligible if you have previously owned: buy-to-let property you may have held

Joint purchases: Both buyers must be first-time buyers for the relief to apply. If one person has previously owned property, standard rates apply to the entire purchase.

Worked examples

How much stamp duty a first-time buyer pays at common price points (from 1 April 2025).

Purchase price£250,000

SDLT payable£0

Entirely within the £300,000 nil-rate band.

Purchase price£350,000

SDLT payable£2,500

£0 on first £300,000. 5% on £50,000 = £2,500.

Purchase price£450,000

SDLT payable£7,500

£0 on first £300,000. 5% on £150,000 = £7,500.

Purchase price£500,000

SDLT payable£10,000

£0 on first £300,000. 5% on £200,000 = £10,000.

What happens above £500,000?

If the property price exceeds £500,000, first-time buyer relief is not available at all. There is no partial relief — you pay the full standard rates on the entire purchase price.

Example: First-time buyer purchasing at £550,000

£0 – £125,000 at 0%	£0
£125,001 – £250,000 at 2%	£2,500
£250,001 – £550,000 at 5%	£15,000
Total SDLT	£17,500

Standard rates apply — no first-time buyer relief. Had the property been £500,000, SDLT would be £10,000 with relief.

How relief changed in April 2025

Comparison of first-time buyer relief before and after the April 2025 threshold reversion.

	Before April 2025	From April 2025
Nil-rate threshold	£425,000	£300,000
Max property value	£625,000	£500,000
SDLT on £350,000	£0	£2,500
SDLT on £425,000	£0	£6,250
SDLT on £500,000	£3,750	£10,000

Calculate your first-time buyer stamp duty

Enter your purchase price and get an instant breakdown showing exactly what you owe under the current rates.

Open the SDLT calculator

Frequently asked questions

How much stamp duty do first-time buyers pay in 2025?

First-time buyers pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000, first-time buyer relief does not apply and standard rates are used instead.

Who counts as a first-time buyer for stamp duty?

HMRC defines a first-time buyer as someone who has never owned a freehold or leasehold interest in a residential property, anywhere in the world. This includes inherited property. For joint purchases, both buyers must be first-time buyers to qualify for relief.

What happens if the property costs more than £500,000?

If the property price exceeds £500,000, first-time buyer relief is not available at all. The buyer pays standard SDLT rates on the full purchase price — there is no partial relief.

Related guides

All stamp duty changes 2025

Complete overview of every rate change

Budget 2025 breakdown

Timeline, before & after, and impact analysis

Information on this page relates to Stamp Duty Land Tax (SDLT) in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT — different rates apply. Always consult a solicitor for your specific circumstances.