Property tax depends on the transaction, purchasers, effective date and any relief or higher-rate rules. Use the relevant tax authority calculator and ask the conveyancer to confirm the return before exchange. This page is not tax or legal advice.
England and Northern Ireland: first-time buyer SDLT relief
For an eligible purchase completing under current rules, relief applies only where every purchaser is a first-time buyer, intends to occupy the home as a main residence and the price is £500,000 or less.
| Part of purchase price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% on that portion |
If the price exceeds £500,000, first-time buyer relief is not available and the normal residential rates apply. The temporary higher thresholds ended on 31 March 2025.
England and Northern Ireland examples
| Price | SDLT with eligible relief | Calculation |
|---|---|---|
| £275,000 | £0 | Entire price within the nil-rate relief band |
| £350,000 | £2,500 | 5% of £50,000 |
| £500,000 | £10,000 | 5% of £200,000 |
| £500,001 | Normal rates | No first-time buyer relief |
Who is a first-time buyer for SDLT?
HMRC defines a first-time buyer for the relief as an individual who has not previously acquired a major interest in a dwelling anywhere in the world and intends to occupy the purchased dwelling as their main residence. Inheritance, gifts, overseas ownership, trusts and previous joint ownership can affect the test. All joint purchasers must qualify.
Do not assume a mortgage structure such as JBSP settles the tax answer. The conveyancer must identify the legal and beneficial purchasers and advise on the actual transaction.
Scotland: LBTT first-time buyer relief
Revenue Scotland's first-time buyer relief increases the residential nil-rate band from £145,000 to £175,000 for a qualifying purchase. Tax is then calculated using the ordinary residential bands above that point. Revenue Scotland states that the maximum relief is £600. Additional Dwelling Supplement and other rules can change the result.
Wales: LTT
Wales does not provide a separate first-time buyer LTT relief. Current main residential rates start at 0% up to £225,000, then apply progressively to the portion within each band. Higher residential rates can apply where the buyer owns other residential property. Use the Welsh Revenue Authority calculator for the transaction date.
Shared Ownership and discounted homes
Shared Ownership SDLT can be paid using a market-value election or, where permitted, in stages. Rent under the lease can also affect the calculation. First-time buyer relief may be available when buying an initial share if its conditions are met. The choice can affect later staircasing, so take advice before submitting the return.
For First Homes and other discounted purchases, the conveyancer should confirm the chargeable consideration and relief rather than assuming tax is always based on a marketing valuation or discount label.
Returns and payment
An SDLT return is normally due within 14 days of the effective date, which is usually completion but can be earlier if the transaction is substantially performed. Conveyancers normally submit and pay as the buyer's agent, but the buyer remains responsible for an accurate return. Scotland and Wales have their own filing processes and deadlines.
Add tax to the purchase budget
Use our calculator for an initial estimate, then have the conveyancer confirm the transaction-specific figure.