First Time Buyer Stamp Duty Calculator

If you’re a first-time buyer, you won’t have to pay SDLT for properties valued at up to £300,000. If your property is worth between £300,000 and £500,000, you’ll pay no SDLT on the first £300,000 and only pay 5% on the portion between £300,000 and £500,000. If the property is worth more than £500,000, you won’t qualify for the exemption regardless of whether you’re a first-time buyer and will have to be Stamp Duty at the standard rates.

Here are the current rates of Stamp Duty for first-time buyers:

Property Value	SDLT for FTBs from 1/4/2025
Up to £300,000	0%
£300,001 – £500,000	5%

Example

• You’re a first-time buyer purchasing a property for £450,000
• You pay no Stamp Duty on the first £300,000
• You pay 5% Stamp Duty on the remaining £150,000
• 5% of £150,000 = £7,500
• You pay £7,500 in Stamp Duty

The standard rates for Stamp Duty – for non-first-time buyers – are as follows:

Property Value	Standard SDLT from 1/4/2025
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1,500,00	10%
£1,500,001+	12%

If you want to make Stamp Duty calculations simple, use our first-time buyer Stamp Duty calculator above or take a look at our SDLT calculator

You can use these calculators to work out how much Stamp Duty you’ll have to pay. 

If you want to know more about how it works, see the examples below:

Example 1 

• You’re a first-time buyer purchasing a property for £200,000 
• How much Stamp Duty do you pay?
• The answer is still nothing. Any property under £300,000 from 1/4/2025 is subject to 0% SDLT for first-time buyers

Example 2 

• You’re a first-time buyer purchasing a property for £500,000 
• How much Stamp Duty do you pay here?
• As a first-time buyer, you’ll pay no SDLT on the first £300,000
• You’ll pay Stamp Duty at the standard rates of 5% on the remaining £200,000
• You’ll pay £10,000 in Stamp Duty

Example 3 

• You’re buying your first home for £950,000
• You won’t qualify for the first-time buyer Stamp Duty exemption as this is worth more than £500,000
• Therefore you’ll pay according to the standard rates:
• 0% on the first £125,000 = £0
• 2% on £125,000 = £2,500
• 5% on £670,000 = £33,750
• 10% on £25,000 = £2,500
• Total = £38,750

The HMRC is the UK tax authority and it has a specific definition of a first-time buyer. In a guide that was published in 2017, it stated: “A first-time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.”

If you want to qualify for first-time buyer Stamp Duty relief, it’s essential to understand this definition. The “interest” in a property here is considered to be any direct equity stake in a property – whether freehold or leasehold. This applies even if the amount of equity held was tiny. If you were on the title deeds, then you’ve owned an interest even if the property was in another country.

However, if you’ve only been an owner of any property indirectly – such as through a real estate investment fund or via a limited company – then you may still qualify as a first-time buyer as you wouldn’t be on the title deeds in your personal name.

There’s also the exception regarding previous ownership of a property subject to a lease that was only 21 years or less. The tax authority sees this as a short lease and so irrelevant. If you owned a property with a short lease you may be able to potentially re-enter the housing market as a first-time buyer. It’s best to speak to your conveyancer or a tax adviser to see if you could qualify.

You must make a declaration during the house purchase process that you’re a first-time buyer. The conveyancer or solicitor acting on your behalf will ask you to complete the first-time buyer declaration form. Generally speaking, you’re not considered to be a first-time buyer until stated so on this form.

If you’ve ever owned a property, or land that can be used for residential purposes, then there will be a record with the Land Registry. Checking this is quite easy.

Time also makes no difference. Whether you owned a property decades ago, you bought one with a person you’re now divorced from or the property no longer exists, you still count as a previous property owner.

There could be serious consequences if you lie about being a first-time buyer. Making a false declaration to HMRC is considered tax evasion, which could mean it’s possible you’ll lose your home and maybe other assets. You may also acquire a criminal record.

HMRC has access to Land Registry and the SLDT databases. HMRC can also demand to see and assess bank statements and your credit reports. If they decide to proceed with an investigation, it’s fair to assume that they’ll discover if you’ve previously owned property before, whether in part or in full.

HMRC has information-sharing arrangements abroad too, so it’s unlikely that you’ll be able to hide previous or present property ownership in other countries either.

Inheriting property also matters when you want to qualify as a first-time buyer. If you inherited land or property from a relative, you won’t be able to declare that you’re a first-time buyer. This is also the case if you were gifted property or if someone else purchased a property and added you to the title deeds. One main exception which would still allow you to qualify as a first-time buyer is if you inherited property that was not residential or was mixed-use without any type of dwelling.

Many buyers make the common mistake of thinking that because they haven’t actually purchased a property, they could still qualify as a first-time buyer. To be a first-time buyer, you must not have owned residential property before  – i.e. you must not have been on the title deeds as an owner – regardless of whether you bought it yourself or not.

For any tax advice about inheritance, speak to a tax adviser about the different options.