Guide to First-Time Buyers’ Relief on Stamp Duty Land Tax

SDLT first-time buyers’ relief: eligibility and thresholds

First-time buyers’ relief can reduce or remove Stamp Duty Land Tax on some residential purchases, but it only applies if the legal conditions are met. The buyer must qualify as a first-time buyer under the legislation, intend to live in the property as their only or main residence, and the purchase price must fall within the relevant limit for the transaction date.

• For transactions from 23 September 2022 to 31 March 2025, the relief is available only if the purchase price is £625,000 or less.
• In that period, no SDLT is due on the first £425,000, and 5% is charged on the part above £425,000 up to £625,000.
• If the price is above £625,000 during that period, the relief is not available at all.
• Earlier rules applied from 22 November 2017 to 22 September 2022, and HMRC says lower thresholds are due to return from 1 April 2025.
• Shared ownership purchases have special rules, depending on whether the buyer elects to pay SDLT on market value or pays SDLT in stages under an approved scheme.
• The main checks are whether the property is residential, whether the buyer meets the statutory first-time buyer test, and which SDLT date and threshold regime applies.

Scroll down for the full analysis.

SDLT first-time buyers’ relief: who it applies to and how the thresholds work

This page explains the basic scope of first-time buyers’ relief for Stamp Duty Land Tax (SDLT). It covers what the relief is for, the price limits that apply at different times, and the special position for shared ownership purchases. The point matters because the relief can reduce SDLT substantially, but only if the purchase falls within the statutory conditions.

What this rule is about

First-time buyers’ relief is a special SDLT relief for some purchases of residential property. Its purpose is to reduce or remove SDLT for people buying their first home, provided the purchase meets the conditions in the legislation.

The relief is not a general discount for anyone buying a home for the first time in everyday language. It is a statutory relief with specific entry conditions. One of the key conditions, as described in the official material here, is that the purchaser must intend to occupy the property as their only or main residence.

The value of the relief depends on when the transaction takes place, because the price limits and nil-rate threshold have changed over time and are due to change again.

What the official source says

HMRC’s manual says that first-time buyers’ relief is available for certain acquisitions of residential property by first-time buyers.

For purchases taking place between 23 September 2022 and 31 March 2025:

• the relief can apply where the purchase price is £625,000 or less, and
• the buyer must intend to occupy the property as their only or main residence.

Within that period, the SDLT effect is:

• no SDLT where the purchase price is £425,000 or less, and
• 5% SDLT on the part above £425,000 where the price is more than £425,000 but not more than £625,000.

HMRC also states that earlier, from 22 November 2017 to 22 September 2022, the relief applied to purchases costing £500,000 or less. The manual says the thresholds are due to return to those lower levels from 1 April 2025.

For shared ownership:

• buyers who elect to pay SDLT on the market value have been within the relief since the relief was introduced, and
• from 29 October 2018, the relief was extended to certain first-time buyers in approved shared ownership schemes who do not make a market value election and instead pay SDLT in stages.

HMRC says that extension applies retrospectively from 22 November 2017.

The manual identifies the legislation as section 57B and Schedule 6ZA to the Finance Act 2003.

What this means in practice

The first practical question is timing. The SDLT treatment depends on the date of the transaction for SDLT purposes. A buyer whose transaction falls within the period from 23 September 2022 to 31 March 2025 may be able to use the higher price cap of £625,000 and the higher nil-rate threshold of £425,000. If the effective date falls outside that period, different thresholds may apply.

The second question is whether the property is residential and whether the purchase is the buyer’s first home in the statutory sense. This page is only an introduction, so it does not set out all of the qualifying conditions. But HMRC makes clear that the relief is only for certain acquisitions by first-time buyers and that occupation as the only or main residence is part of the test.

The third question is price. During the temporary period ending on 31 March 2025, the relief is available only if the purchase price does not exceed £625,000. If the price is above that figure, the relief is not available at all. This is important because the relief is not tapered beyond the upper limit. The source material does not say that a buyer simply loses relief on the excess. It says the relief applies to purchases of £625,000 or less.

Shared ownership purchases need special care. HMRC distinguishes between:

• buyers who elect to pay SDLT on the market value of the property, and
• buyers in approved shared ownership schemes who do not make that election and instead pay SDLT in stages.

The availability of first-time buyers’ relief depends in part on which route applies. The manual points readers to separate guidance dealing with the detailed shared ownership rules.

How to analyse it

A sensible way to approach the relief is to work through these questions in order:

• Is the transaction an acquisition of residential property for SDLT purposes?
• Is the purchaser a first-time buyer within the statutory rules, not just in ordinary conversation?
• Does the purchaser intend to occupy the property as their only or main residence?
• What is the relevant transaction date for SDLT, and which threshold regime applies on that date?
• Is the price within the maximum figure for the relevant period?
• If the property is shared ownership, is there a market value election, or is SDLT being paid in stages under an approved scheme?

This framework matters because the relief depends on several conditions working together. A buyer may be a genuine first-time homeowner in everyday terms but still need to check the statutory conditions carefully before assuming the relief is available.

Example

Illustration: a buyer purchases their first home for £450,000 on a date between 23 September 2022 and 31 March 2025, and they intend to live in it as their only or main residence. On the basis of the HMRC material here, first-time buyers’ relief may apply because the price does not exceed £625,000. The SDLT effect in that period would be no SDLT on the first £425,000 and 5% on the remaining £25,000.

By contrast, if the purchase price were above £625,000 in that same period, this introductory HMRC guidance indicates that the relief would not apply.

Why this can be difficult in practice

The main difficulty is that this page is only an introduction. It gives the broad structure of the relief, but not the full detail of the qualifying conditions. In practice, disputes or uncertainty often arise not from the headline rates, but from whether the buyer is a first-time buyer within the legislation, whether the property will be the buyer’s only or main residence, and how the rules apply to shared ownership arrangements.

Timing can also matter more than buyers expect. The source material refers to different threshold periods and says the lower thresholds are due to return from 1 April 2025. That means a transaction near a changeover date may need careful checking against the SDLT effective date rules.

Shared ownership can be especially technical. The SDLT outcome may differ depending on whether the buyer elects for market value treatment or uses the staged payment approach in an approved scheme. The introductory page signals this, but the detail sits elsewhere in HMRC’s guidance and in the legislation.

Key takeaways

• First-time buyers’ relief can reduce or eliminate SDLT on certain residential purchases, but only if the statutory conditions are met.
• Between 23 September 2022 and 31 March 2025, the relief applies only where the price is £625,000 or less, with no SDLT up to £425,000 and 5% on the slice above that up to £625,000.
• Shared ownership purchases have special rules, and the SDLT treatment depends on whether the buyer elects for market value treatment or pays SDLT in stages under an approved scheme.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guide to First-Time Buyers’ Relief on Stamp Duty Land Tax

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