First-Time Buyer Stamp Duty Calculator
First-time buyers pay no SDLT up to £300,000, then 5% on the slice between £300,001 and £500,000. Above £500,000 the relief is withdrawn entirely and standard rates apply to the whole price.
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Who qualifies as a first-time buyer
Every person named on the purchase must meet the FTB definition. HMRC defines a first-time buyer as someone who has never owned a freehold or leasehold interest in any residential property, anywhere in the world.
This catches more people than buyers expect. You do not qualify if you have:
- previously owned a home in the UK, even if sold years ago
- inherited a share of a property, including a fraction of a parent's home
- owned residential property overseas
- a beneficial interest under a trust that holds residential property
On a joint purchase every buyer must qualify. If one of you previously owned, the whole transaction loses FTB relief and pays standard rates.
First-time buyer SDLT at common prices
How much you save versus a standard buyer.
Common pitfalls
Buying with a non-FTB partner
The most common reason FTB relief fails on completion. If your partner has ever owned property, including a previous main residence sold long ago, the relief is not available to either of you. Some couples choose to buy in the FTB's sole name, but this has mortgage and ownership implications you should think through carefully.
Inherited shares of a family home
If you inherited a fraction of a parent's home in the past, even briefly, you are no longer a first-time buyer for SDLT purposes. The rule looks at whether you have ever held any beneficial interest, not whether you currently do.
The £500,000 cliff
There is no taper. £499,999 attracts £9,999.95 in SDLT with FTB relief. £500,001 attracts roughly £15,000 because standard rates apply to the whole price. If you are negotiating around the cap, the saving from staying at or below £500,000 is material.
Frequently asked
- Who counts as a first-time buyer for stamp duty?
- Everyone purchasing the property must be a first-time buyer. A first-time buyer is someone who has never owned a freehold or leasehold interest in a residential property anywhere in the world. Inheriting a share, owning a buy-to-let, or having owned overseas all disqualify you.
- How much can a first-time buyer save?
- Up to £6,250. On a purchase at the £500,000 cap, FTB relief saves £5,000 versus standard rates (£10,000 instead of £15,000). The maximum theoretical saving is £6,250 around the £425,000 mark depending on the exact price.
- What happens at £500,000?
- At £500,000 exactly you pay £10,000 SDLT with FTB relief. At £500,001 the relief is withdrawn entirely and standard rates apply to the whole price, taking the bill to roughly £15,000. The cliff is genuine, there is no taper.
- My partner has owned a home before. Can I still claim FTB relief?
- No. If you are buying jointly, every buyer named on the deed must be a first-time buyer. Even if you have never owned a property, you cannot claim FTB relief on a joint purchase with someone who has.
- Does inheriting a share of a property disqualify me?
- Yes. If you have inherited any share of a residential property, HMRC treats you as having owned a property and FTB relief is not available, even if you no longer hold that share.
- I owned property abroad. Do I still qualify?
- No. The FTB definition covers residential property anywhere in the world, not just the UK. Previous overseas ownership disqualifies you.
- Do I claim FTB relief, or does my solicitor?
- Your conveyancer files the SDLT1 return on completion and ticks the FTB relief box. You should confirm in writing that you are claiming relief and that all named buyers qualify, because the buyer remains legally responsible for the return.