What is the stamp duty threshold for first time buyers?
Answered 11 March 2026
Here is a full answer covering the current position and the relevant history.
Stamp Duty Land Tax (SDLT): First-Time Buyer Relief Thresholds
What the law says
First-time buyer relief is provided by s.57B and Schedule 6ZA, Finance Act 2003. The relief may be claimed where four conditions are met, including that the relevant consideration is not more than £500,000 and that each purchaser is a first-time buyer intending to occupy the dwelling as their only or main residence.
The relief must be claimed in a land transaction return or an amendment of such a return.
Temporary uplift (23 September 2022 – 31 March 2025): Legislation temporarily modified Schedule 6ZA so that the maximum purchase price threshold was raised to £625,000, and the nil-rate band for first-time buyers was raised to £425,000 (with 5% applying on the amount above £425,000 up to £625,000).
HMRC guidance / practice
HMRC confirms the following rate structure, which applies from 1 April 2025 (i.e. the current position):
| Part of purchase price | Rate |
|---|---|
| Up to £300,000 | 0% |
| Above £300,000 up to £500,000 | 5% |
| Above £500,000 | Relief not available |
Example (HMRC): A first-time buyer purchasing for £450,000 would pay: 0% on the first £300,000 = £0, plus 5% on the remaining £150,000 = £7,500 total SDLT.
Historical summary (per HMRC):
- 22 November 2017 – 22 September 2022: Relief applied to purchases up to £500,000, with a nil-rate band of £300,000.
- 23 September 2022 – 31 March 2025: Relief applied to purchases up to £625,000, with a nil-rate band of £425,000.
- From 1 April 2025: Relief applies to purchases up to £500,000, with a nil-rate band of £300,000.
HMRC also notes that relief cannot be claimed where the purchase is a higher rates transaction (e.g. additional dwelling), or where the purchase includes non-residential land.
⚠️ Note: The thresholds changed on 1 April 2025. If your transaction completed before that date, the higher £425,000/£625,000 thresholds applied. Always check the effective date of the transaction.
Citation sources
The conditions for the relief are set out in FA03 s57B and Schedule 6ZA. References in this section of the manual are to paragraphs of that schedule unless otherwise stated. Broadly, this relief applies where: · there is a purchase of a single dwelling, and · the purchase price is not more than £500,000, and · the purchaser or, if there is more than one, each of them, is an individual, and · the purchaser or, if there is more than one, each of them, is a first-time buyer, who intends to occupy t
PART 2 Indirect taxes Stamp duty land tax Relief for first-time buyers 41 1 Part 4 of FA 2003 (stamp duty land tax) is amended as follows. 2 After section 57A insert— First-time buyers 57B 1 Schedule 6ZA provides relief for first-time buyers. 2 Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return. 3 After Schedule 6 insert— SCHEDULE 6ZA Relief for first-time buyers PART 1 Eligibility for relief Eligibility for relief 1 1 Relief may be claim
Where relief is available the rates of SDLT applicable are: · 0% on the first £300,000 of the purchase price, and · 5% on the amount above £300,000 up to £500,000. For example, the tax due on the purchase of a dwelling by a first-time buyer for £450,000 would be £7,500. That is calculated as follows: On the first £300,000 of the purchase price at a rate of 0% = £0 On the remaining £150,000 of the purchase price at a rate of 5% = £7,500 For property purchased from 23 September 2022 to 31 March 20
Part 4 Stamp duty land tax Reliefs First-time buyers 57B 1 Schedule 6ZA provides relief for first-time buyers. 2 Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
Relief from SDLT is available for certain acquisitions of residential property by first-time buyers: · From 1 April 2025 the relief applies to purchases of residential property for £500,000 or less, provided the purchaser intends to occupy the property as their only or main residence. · Between 23 September 2022 and 31 March 2025 the relief applied to purchases of residential property for £625,000 or less. · The relief applied from 22 November 2017 to 22 September 2022 for purchases of residen