First-time buyer Stamp Duty relief: England and NI, Scotland and Wales compared
All three UK property taxes treat first-time buyers differently. In England and Northern Ireland, SDLT relief means no tax up to £300,000 but no relief at all above £500,000. In Scotland, LBTT relief is worth up to £600. In Wales there is no first-time buyer relief. Here is how each works, with the tax worked out at the same prices.
Which tax applies
Stamp Duty Land Tax (SDLT) is paid on property or land in England and Northern Ireland. In Scotland you pay Land and Buildings Transaction Tax (LBTT), run by Revenue Scotland, and in Wales Land Transaction Tax (LTT), run by the Welsh Revenue Authority. Each has its own rates and reliefs.
England and Northern Ireland: SDLT first-time buyer relief
GOV.UK says you can claim the relief "if the property you buy is your first home", and that you are eligible "if you and anyone else you're buying with are first-time buyers". With the relief you pay:
- no SDLT up to £300,000
- 5% on the portion from £300,001 to £500,000
"If the price is over £500,000, you cannot claim the relief", and the standard rates apply instead: 0% up to £125,000, 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million and 12% above. GOV.UK's example: a first-time buyer paying £500,000 owes 0% on the first £300,000 and 5% on the remaining £200,000, so £10,000.
Who counts as a first-time buyer for SDLT
HMRC's Stamp Duty Land Tax Manual sets out the detail:
- You must never have acquired a major interest in a dwelling, alone or with others, anywhere in the world, whatever its value. Inheritance and gifts count.
- A lease with less than 21 years to run that you were granted or assigned does not count against you.
- If you buy jointly, every purchaser must be a first-time buyer, and every purchaser must intend to live in the property as their only or main residence. You do not have to move in immediately if there is a clear intention to.
- If only one spouse or civil partner is buying, the other's past ownership is not considered for this relief (unlike the higher rates for additional properties).
- Only individuals can claim; if a company is one of the buyers, no relief is available.
The £500,000 cliff edge
Because the relief disappears completely above £500,000 rather than tapering, the tax jumps at that point:
- £500,000 with relief: £10,000
- £500,001 without relief: £15,000.05
One extra pound of price adds about £5,000 of SDLT. HMRC's manual adds that if purchases are linked transactions, the £500,000 test applies to their combined price.
If you are not a UK resident for SDLT purposes (not present in the UK for at least 183 days in the 12 months before buying), GOV.UK says a 2% surcharge usually applies on top of the other rates, including first-time buyer rates.
Scotland: LBTT first-time buyer relief
Revenue Scotland's residential rates (from 1 April 2021) are 0% up to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above. First-time buyer relief "increases the residential nil rate band of LBTT to £175,000", which means a reduction "of up to £600". Revenue Scotland's guidance sets no maximum price for the relief.
Revenue Scotland's guidance (LBTT3048) lists the conditions. All must be met:
- the property is residential and includes a dwelling
- the buyer has never owned a residential property anywhere in the world (gifted or inherited homes count)
- the buyer intends to occupy it as their only or main residence
- the transaction is not a linked transaction (with exceptions for garden or grounds)
- the Additional Dwelling Supplement does not apply
With more than one buyer, each must meet every condition. The relief must be claimed in the first LBTT return or an amendment to it.
Wales: no first-time buyer relief
The Welsh Revenue Authority is direct about it: "There's no first-time buyers' relief in Wales." First-time buyers pay the main residential rates like anyone buying their only home: 0% on the portion up to £225,000, 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above (for transactions from 10 October 2022). The Welsh main nil-rate band of £225,000 is higher than the standard nil-rate bands in England and NI (£125,000) and Scotland (£145,000), which is why a first-time buyer in Wales can still pay less than one in Scotland at some prices.
Worked comparison: tax at the same price
Buying your only home, 2026, no surcharges:
| Price | England/NI standard | England/NI first-time buyer | Scotland standard | Scotland first-time buyer | Wales (everyone) |
|---|---|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,100 | £500 | £0 |
| £250,000 | £2,500 | £0 | £2,100 | £1,500 | £1,500 |
| £300,000 | £5,000 | £0 | £4,600 | £4,000 | £4,500 |
| £350,000 | £7,500 | £2,500 | £8,350 | £7,750 | £7,500 |
| £400,000 | £10,000 | £5,000 | £13,350 | £12,750 | £10,500 |
| £450,000 | £12,500 | £7,500 | £18,350 | £17,750 | £14,250 |
| £500,000 | £15,000 | £10,000 | £23,350 | £22,750 | £18,000 |
| £510,000 | £15,500 | £15,500 (no relief) | £24,350 | £23,750 | £18,750 |
Three patterns stand out. In England and NI the relief saves the full standard bill up to £300,000 and a flat £5,000 from £300,000 to £500,000, then nothing. In Scotland the saving is £600 at any price from £175,000 upwards (less below that: at £150,000 the standard bill is £100 and the first-time buyer bill is £0). In Wales the figure is the same for everyone.
Worked example: £375,000 in Manchester, Edinburgh and Cardiff
- England (SDLT, first-time buyer): 0% on £300,000, 5% on £75,000 = £3,750 (standard rates would be £8,750).
- Scotland (LBTT, first-time buyer): 0% on £175,000, 2% on £75,000 (£1,500), 5% on £75,000 (£3,750), 10% on £50,000 (£5,000) = £10,250 (standard £10,850).
- Wales (LTT): 0% on £225,000, 6% on £150,000 = £9,000.
Paying and filing
For SDLT, you send a return to HMRC and pay within 14 days of completion; a solicitor or conveyancer usually does this for you and adds it to their fees. In Scotland, an LBTT return is needed for most residential purchases of £40,000 or more, even if no tax is due. If you are using a Lifetime ISA towards the deposit, it has its own £450,000 price limit — see our Lifetime ISA guide.
Frequently asked questions
How much Stamp Duty does a first-time buyer pay in England?
No SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. A £500,000 home costs £10,000. Above £500,000 the relief cannot be claimed at all and standard rates apply, so a £510,000 home costs £15,500.
Is there first-time buyer relief in Scotland?
Yes. LBTT first-time buyer relief raises the nil-rate band from £145,000 to £175,000, saving up to £600. Every buyer must never have owned a home anywhere in the world, must intend to live there, and the Additional Dwelling Supplement must not apply.
Is there first-time buyer relief in Wales?
No. The Welsh Revenue Authority says there is no first-time buyers' relief in Wales. First-time buyers pay the main residential LTT rates, which start at 0% on the first £225,000.
Who counts as a first-time buyer for SDLT?
Someone who has never acquired a major interest in a dwelling anywhere in the world, including by gift or inheritance, and intends to live in the property as their only or main residence. If buying jointly, every buyer must qualify.
What happens if the house costs just over £500,000?
In England and Northern Ireland the relief is lost completely. At £500,000 a first-time buyer pays £10,000; at £500,001 the standard rates apply and the bill is £15,000.05.
Sources
- GOV.UK — Stamp Duty Land Tax (all sections) — read 18 October 2026
- HMRC — SDLTM29845: definition of a first-time buyer — read 18 October 2026
- HMRC — SDLTM29831: only or main residence condition — read 18 October 2026
- HMRC — SDLTM29825: the £500,000 condition — read 18 October 2026
- Revenue Scotland — LBTT residential property rates and bands — read 18 October 2026
- Revenue Scotland — LBTT3048 first-time buyer relief — read 18 October 2026
- Welsh Revenue Authority — Land Transaction Tax overview — read 18 October 2026
- Welsh Revenue Authority — Land Transaction Tax rates and bands — read 18 October 2026
Every figure in the tables and examples was calculated with the engine behind our Stamp Duty calculator (SDLT, LBTT and LTT residential rates as published on 18 October 2026), for a buyer of a single home with no non-resident surcharge or additional-property rates.
Prepared and reviewed by the Calcistry editorial team · Reviewed · Editorial policy
General information, not financial or tax advice. Rules and rates can change; check GOV.UK or the relevant tax authority for your own circumstances.
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