What are the current first-time buyer SDLT thresholds?

From 1 April 2025, first-time buyer's relief gives a 0% SDLT rate on the first £300,000 of a property purchase, with a 5% rate on the portion between £300,000 and £500,000. The relief is not available on properties above £500,000. The first-time buyer SDLT thresholds reverted to their original 2017 levels on 1 April 2025. The relief now provides a 0% SDLT rate on the first £300,000 of the purchase price and a 5% rate on the portion between £300,000 and £500,000. No relief is available on properties costing more than £500,000 — the full standard residential SDLT rates apply. The temporary increase to the thresholds (a 0% band on the first £425,000 and a taper to £625,000, in place from 23 September 2022 to 31 March 2025) has expired and no longer applies. Relevant legislation: Schedule 4ZA Finance Act 2003, Paragraph 5 (first-time buyer relief); Finance Act 2017; Finance Act 2022 (temporary thresholds, now expired). Example: A first-time buyer purchases a property for £400,000 in October 2026. SDLT is £0 on the first £300,000 and 5% on the next £100,000 = £5,000. Without the relief, the SDLT would be £10,000 (standard residential rates). Common mistake: Relying on the temporary £425,000/£625,000 thresholds, which expired on 31 March 2025. The current thresholds are £300,000 and £500,000.

Who counts as a first-time buyer for SDLT?

A first-time buyer is a person who has never owned a residential property anywhere in the world. In a joint purchase, both purchasers must meet this condition. The first-time buyer condition is strict. A person is a first-time buyer if they have never owned a residential property anywhere in the world, whether alone or with others, and whether directly or through a trust. Inherited property counts as ownership. The test is whether you have ever owned residential property, not whether you currently own it — so a person who owned a home years ago and sold it is not a first-time buyer. In a joint purchase, both purchasers (and their spouses or civil partners) must meet the condition. If even one party has previously owned residential property, the relief is not available at all. Relevant legislation: Schedule 4ZA Finance Act 2003, Paragraph 5; SDLTM09820 HMRC Manual. Example: A buyer who has never owned property purchases a home for £350,000 and claims first-time buyer's relief. SDLT is £2,500 (5% on £50,000 above the £300,000 threshold). A buyer who owned and sold a flat ten years ago is not a first-time buyer and cannot claim the relief. Common mistake: Assuming that because you no longer own a property, you are a first-time buyer. The test is whether you have ever owned residential property.

Can I claim first-time buyer's relief if my partner has previously owned a property?

No. In a joint purchase, all purchasers must be first-time buyers. If one purchaser (or their spouse or civil partner) has previously owned residential property, the relief is not available at all. The first-time buyer condition applies to all purchasers in a joint transaction. If any purchaser, or the spouse or civil partner of any purchaser, has previously owned a residential property, the relief is not available. The relief is not partially available — it is all or nothing. This is a common trap for couples where one partner has previously owned a home. The position is the same whether the property is purchased in joint names or, in some cases, where one partner provides funding. Each purchaser must independently satisfy the first-time buyer condition. Relevant legislation: Schedule 4ZA Finance Act 2003, Paragraph 5(3); SDLTM09820 HMRC Manual. Example: A couple buys a home together for £400,000. One partner has never owned property; the other owned and sold a flat five years ago. First-time buyer's relief is not available, because not all purchasers are first-time buyers. The full standard residential SDLT of £10,000 applies. Common mistake: Assuming that because one purchaser is a first-time buyer, a partial relief is available. The relief requires all purchasers to be first-time buyers.

Does the 3% SDLT surcharge apply to first-time buyers?

No. First-time buyers are exempt from the 3% additional dwelling surcharge, in addition to qualifying for the first-time buyer rate bands. First-time buyers benefit from two advantages. First, they qualify for the first-time buyer rate bands (0% on the first £300,000, 5% to £500,000). Second, they are exempt from the 3% additional dwelling surcharge that normally applies to buyers of additional residential properties. Because a first-time buyer does not own another residential property, the surcharge does not apply. Both advantages only apply if the first-time buyer condition is genuinely met. If a buyer incorrectly claims first-time buyer status, both the standard SDLT and the 3% surcharge may become payable, with interest and potential penalties. Relevant legislation: Schedule 4ZA Finance Act 2003, Paragraph 5 (first-time buyer relief and surcharge exemption). Example: A first-time buyer purchases a property for £450,000. SDLT is £7,500 (5% on £150,000 above the £300,000 threshold), with no 3% surcharge. A non-first-time buyer purchasing the same property as an additional home would pay £22,500 (standard rates plus the 3% surcharge). Common mistake: Paying the 3% surcharge on a first property purchase because the conveyancer applied a default 'additional property' treatment without checking first-time buyer status.

What if I claimed first-time buyer's relief under the old (temporary) thresholds?

If you claimed the relief before 1 April 2025 under the temporary £425,000/£625,000 thresholds, that claim stands for that transaction. The reversion to £300,000/£500,000 applies to transactions with an effective date on or after 1 April 2025. The reversion of the thresholds on 1 April 2025 applies to transactions with an effective date on or after that date. Transactions that completed before 1 April 2025 are assessed under the thresholds in force at the time, so a valid claim made under the temporary thresholds is not affected. For transactions on or after 1 April 2025, the current £300,000 and £500,000 thresholds apply. If you are unsure which thresholds apply to a recent or upcoming transaction, specialist advice should be sought to confirm the position before the SDLT return is filed. Relevant legislation: Schedule 4ZA Finance Act 2003, Paragraph 5; Finance Act 2022 (temporary thresholds, expired 31 March 2025). Example: A first-time buyer completed a purchase on 15 February 2025 for £500,000. The temporary thresholds applied, so SDLT was £3,750 (5% on £75,000 above £425,000). A buyer completing the same purchase on 15 April 2025 pays SDLT of £10,000 (5% on £200,000 above £300,000). Common mistake: Assuming the temporary thresholds still apply to transactions after 1 April 2025. They do not — the current thresholds are £300,000 and £500,000.

SDLT Advisory › Reliefs

First-Time Buyer SDLT Relief

First-time buyers can claim SDLT relief on the first £300,000 of a property purchase, with tapered relief up to £500,000. Understanding who qualifies — and the common traps — is essential.

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First-time buyer's relief is one of the most valuable SDLT reliefs for people buying their first home. Since 1 April 2025, the relief provides a 0% SDLT rate on the first £300,000 of the purchase price and a tapered 5% rate on the next £200,000, for properties up to £500,000. The temporary increase to the thresholds (which ran from 23 September 2022 to 31 March 2025) has expired, and the relief has reverted to the original 2017 levels. Qualifying for the relief is not always straightforward, and joint purchasers must both meet the first-time buyer condition.

The Current Relief (From 1 April 2025)

First-time buyer's relief provides a 0% SDLT rate on the first £300,000 of the purchase price. For the portion of the purchase price between £300,000 and £500,000, SDLT is charged at 5%. The relief is not available on properties costing more than £500,000. These thresholds apply from 1 April 2025. The temporary thresholds introduced on 23 September 2022 (a 0% rate on the first £425,000 and a taper to £625,000) expired on 31 March 2025 and no longer apply.

Who Qualifies as a First-Time Buyer?

To qualify, neither the buyer nor (in a joint purchase) their spouse or civil partner must have ever owned a residential property anywhere in the world. Ownership can be direct or through a trust, and it includes inherited property. The test is whether you have ever owned residential property, not whether you currently own it. A person who owned a property decades ago and sold it is not a first-time buyer. The definition is strict and HMRC will check it.

Joint Purchases and the First-Time Buyer Condition

In a joint purchase, all purchasers must be first-time buyers for the relief to apply. If even one purchaser has previously owned a residential property, the relief is not available at all — it is not partially available. This is a common trap for couples where one partner has previously owned a home. The position can be different where the previous property was disposed of long ago, but the first-time buyer condition looks at whether the person has ever owned residential property, not when they disposed of it.

Interaction With the 3% Surcharge

First-time buyers are exempt from the 3% additional dwelling surcharge. This means a first-time buyer purchasing a residential property pays SDLT at the first-time buyer rates (0% to 5%) and does not pay the 3% surcharge, even though they are acquiring an additional dwelling in the sense that they do not yet own one. This exemption is valuable and is one of the key benefits of first-time buyer status. However, the relief and the surcharge exemption only apply if the first-time buyer condition is genuinely met.

Key Points

What You Need to Know

From 1 April 2025, the 0% band applies to the first £300,000, with a 5% taper to £500,000
The temporary £425,000/£625,000 thresholds expired on 31 March 2025
Neither buyer nor spouse/civil partner must have ever owned residential property anywhere
In a joint purchase, all purchasers must be first-time buyers — the relief is not partial
First-time buyers are exempt from the 3% additional dwelling surcharge

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