First-time buyers may need to pay property tax. The amount depends on where the home is, its price and the buyers’ circumstances. England and Northern Ireland use Stamp Duty Land Tax (SDLT), Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Each has its own rules.
How much can a first-time buyer purchase without property tax?
| Property location and tax | Position before any surcharge |
|---|---|
| England and Northern Ireland (SDLT) | Qualifying first-time buyers pay no SDLT on the first £300,000, provided the total price is £500,000 or less. |
| Scotland (LBTT) | Qualifying first-time buyer relief increases the tax-free band to £175,000. |
| Wales (LTT) | The main residential rates start above £225,000. There is no separate first-time buyer relief. |
The property’s location determines the tax system. Your current address does not. The figures below assume a single residential purchase by individuals, with the relevant relief available and no additional-property or non-resident surcharge. Shared ownership and other special arrangements need separate checks.
England and Northern Ireland: first-time buyer stamp duty
Under the rules applying from 1 April 2025, eligible buyers pay nothing on the first £300,000 and 5% on the part above that, up to a purchase price of £500,000. If the price exceeds £500,000, first-time buyer relief is lost for the whole purchase. The ordinary residential bands then apply.
| Purchase price | SDLT payable |
|---|---|
| £300,000 | £0 |
| £310,000 | £500 |
| £450,000 | £7,500 |
| £500,000 | £10,000 |
| £500,100 | £15,005 — relief is unavailable |
For example, the £310,000 purchase produces a £500 bill because only £10,000 is taxed at 5%. A buyer who does not qualify for relief would pay £5,500 at standard rates, before any surcharge.
Use our stamp duty calculator for England and Northern Ireland to estimate a straightforward purchase. Check the current HMRC rates and ask your conveyancer to confirm the amount before you commit.
Scotland: first-time buyer LBTT relief
Scotland has its own relief. It raises the nil-rate band from £145,000 to £175,000, reducing the bill by up to £600. A qualifying purchase above £175,000 can still benefit from the relief; the remaining price is taxed through the applicable LBTT bands.
For a £220,000 home, an eligible first-time buyer pays £900: 2% of the £45,000 above £175,000. The standard bill without relief would be £1,500. These examples exclude the Additional Dwelling Supplement.
Every buyer must meet Revenue Scotland’s first-time buyer conditions, including the intention to occupy the home as their only or main residence. Use the official LBTT calculator for your price and circumstances.
Wales: Land Transaction Tax for first-time buyers
Wales does not offer first-time buyer LTT relief. Under the main residential rates, no tax is charged on the first £225,000, and 6% applies to the portion above £225,000 up to £400,000. Further bands apply to higher prices.
For example, a £275,000 purchase at the main residential rates produces £3,000 of LTT: 6% of £50,000. Higher residential rates may apply in some circumstances, including purchases involving another property owner.
See the Welsh Revenue Authority’s LTT overview, rates and bands and LTT calculator. Do not use an England-only SDLT calculation for a Welsh property.
Who qualifies, and what if you are buying together?
For SDLT relief, all purchasers must be first-time buyers and intend to occupy the property as their main home. Previous ownership of a qualifying interest in a dwelling anywhere in the world can rule out relief, including a share acquired through inheritance or a gift. Selling that interest does not reset the history.
A previous rental tenancy is different from owning a home. Unusual leases, trusts, inherited interests and overseas ownership need careful treatment: give your conveyancer the documents rather than relying on a broad label. HMRC’s definition of a first-time buyer explains the ownership test and exceptions. Scotland applies its own criteria linked above.
If you buy jointly with someone who fails the relevant first-time buyer test, you cannot claim a partial share of SDLT or Scottish LBTT first-time buyer relief. A lender’s description of a mortgage as a first-time buyer product does not establish tax eligibility.
Family help, marriage and extra tax
A gifted deposit is different from a parent taking an ownership interest. Explain who is providing money, who will own the home and who will borrow. Adding an owner can change the tax position.
In England and Northern Ireland, the higher rates for additional properties add five percentage points where applicable. A spouse’s or civil partner’s ownership can matter even if they are not named as a buyer. This is a separate test from whether the purchaser has owned a home before.
The SDLT non-resident surcharge can add two percentage points, including where first-time buyer relief is available. It uses a specific residence test, not nationality alone. Scotland and Wales have their own additional-property rules.
How do you claim relief, and when is tax paid?
Your solicitor or conveyancer will usually check eligibility, prepare the return and arrange payment. Tell them about every buyer’s ownership history early. A nil tax bill does not necessarily mean that no return is required.
- England and Northern Ireland: SDLT returns and payment are normally due within 14 days of the effective date, usually completion. See HMRC’s return requirements.
- Scotland: the LBTT return is normally due within 30 days of the day after the effective date. Tax is payable when the return is submitted. See Revenue Scotland’s filing guidance.
- Wales: the LTT return and payment are normally due within 30 days of the day after completion or another effective date, as explained in the WRA overview above.
Your conveyancer may need the money before completion to meet these obligations. Ask for a written completion statement and a date by which cleared funds must reach them. Have them confirm the deadline if possession, payment or another event happens before normal completion.
What other first-time buyer costs should you budget for?
Calculate the cash needed for the whole purchase before deciding how much of your savings to use as a deposit. Keep a separate list of quotes, payment dates and refundable amounts.
- Mortgage deposit: use your agreed purchase price and planned deposit percentage. Our deposit calculator helps with the arithmetic; it does not confirm mortgage eligibility.
- Legal work and searches: request an itemised quote, including VAT, searches, registration and transfer charges. Some costs may be requested before completion.
- Survey and valuation: the lender’s valuation serves the lender’s purposes. Consider whether you need a separate survey of the property’s condition and confirm the cost before booking.
- Mortgage and advice fees: check what applies to your case, when it is payable and whether it is refundable. Adding a fee to a mortgage, where permitted, means paying interest on it.
- Insurance and property charges: check when cover needs to start and ask about leasehold service charges, ground rent or estate charges where relevant.
- Moving and a cash reserve: allow for removals, initial bills and repairs rather than allocating every remaining pound to the purchase.
For illustration, a £310,000 home in England with a 10% deposit needs £31,000 for the deposit. If all buyers qualify for relief and no surcharge applies, add £500 SDLT: £31,500 before legal work, survey, fees and other costs. This is a budgeting example, not a lender’s deposit requirement or a quote.
MoneyHelper’s buying-cost guide explains the main categories. Obtain quotes for your own purchase rather than relying on a single typical-cost figure.
First-time buyer tax questions
Do all joint buyers have to be first-time buyers?
For SDLT relief in England and Northern Ireland, and first-time buyer LBTT relief in Scotland, every purchaser must meet the relevant conditions. There is no separate first-time buyer LTT relief in Wales. A joint purchase does not receive partial first-time buyer relief for just one eligible buyer.
Does an inherited share of a home affect relief?
It can. For SDLT, a previous qualifying ownership interest in a dwelling, including an inherited share, normally prevents first-time buyer relief regardless of its value. Scotland also takes inherited ownership into account. Give your conveyancer the inheritance and ownership documents so they can check exactly what interest you acquired.
Does buying with cash avoid stamp duty?
No. Property tax is based on the transaction and the relevant tax rules, not on whether you use a mortgage. A cash buyer can claim applicable first-time buyer relief if they meet its conditions.
Is the tax based on my deposit or the home's price?
For a straightforward purchase, it is based on the purchase price, not the size of your mortgage deposit. Increasing the deposit does not by itself reduce the property tax. Shared ownership and other special transactions need their own calculation.
Do shared ownership buyers qualify for SDLT relief?
Eligible first-time buyers in England and Northern Ireland can qualify under the shared ownership rules. The home's full market value must be no more than £500,000, not just the price of the share. Ask your conveyancer to check relief and the choice between a market value election and paying SDLT in stages. Other UK nations have different rules.
For the detailed shared ownership rules, see HMRC’s relief guidance.
Need help working out your mortgage budget?
Count Ready can discuss your borrowing plans, deposit and mortgage options as part of its first-time buyer mortgage advice service. Your conveyancer or tax adviser should confirm the property tax.
For a useful first conversation, have your approximate purchase price, deposit and income details to hand, and explain whether you are researching, viewing homes or preparing an offer.
Tax rules checked on 7 September 2026 against the official sources linked in this guide. Rules depend on the transaction’s effective date and may change. This is general guidance for buying a home, not a personal tax assessment.