How first-time buyer relief works
Eligible first-time buyers in England and Northern Ireland have a £300,000 nil-rate band. The portion above £300,000 is charged at 5%, provided the entire purchase price is no more than £500,000. The calculator starts with first-time buyer selected, and you can change the buyer type if the relief conditions are not met.
These figures assume a UK-resident purchaser for SDLT purposes. A non-resident buyer may still qualify for first-time buyer relief, but a separate non-resident surcharge can increase the tax. Use the residency checkbox if that surcharge applies.
The £500,000 limit is a cliff edge
At £500,000, an eligible UK-resident first-time buyer pays £10,000. At £500,001, relief is lost and the standard-rate tax is £15,000 after whole-pound rounding. Increasing an offer by £1 in this example increases the tax by £5,000.
That is different from crossing an ordinary rate band, where only the extra slice attracts the next rate. Use the price comparison below when an offer is close to the relief limit, and include tax in the amount you can afford to complete.
Every joint buyer must qualify
The relief depends on the history of every purchaser. A previous ownership interest in residential property anywhere in the world, including an inherited or gifted interest, can prevent someone from being a first-time buyer. Selling that property before buying again does not reset their history.
The home must also be intended as the buyers’ only or main residence. A first property bought solely to let out is not automatically eligible. Ask your conveyancer about past interests, trusts or unusual ownership arrangements before relying on the relief.
What changes outside England and Northern Ireland?
Scotland offers a different LBTT first-time buyer relief, with a maximum saving of £600. Wales has no distinct first-time buyer LTT relief. Use our Scottish calculator or Welsh calculator for those properties.
For shared ownership, the share price alone may not establish the SDLT liability. A market value election, rent and later staircasing can matter. Read the shared-ownership guide before treating the result here as a full estimate.
RESEARCH & CORRECTIONS
Sources and review
Researched and maintained by StampDutyCal. Checked on against the official sources below. This is our own research, not an independent professional tax review. We update the website when rules change.