First-time buyer relief: England, Scotland and Wales

The three regimes compared

England and Northern Ireland: SDLT

GOV.UK sets out the relief for SDLT as follows: you pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000 the relief is not available and the standard single-property rates apply. The relief has existed for transactions with an effective date on or after 22 November 2017, and the current bands apply from 1 April 2025 (GOV.UK).

Conditions:

• you must never have owned an interest in a residential property, in the UK or anywhere else in the world;
• you must intend to occupy the property as your main residence;
• the price must be £500,000 or less;
• you must claim the relief in the SDLT return.

HMRC’s manual adds that earlier acquisitions by inheritance or gift also count against you, that owning a part share in a dwelling disqualifies you, and that a lease with fewer than 21 years left does not disqualify you. Owning non-residential property in the past does not disqualify you either.

Worked example from GOV.UK. For a £500,000 purchase, 0% on the first £300,000 is £0 and 5% on the remaining £200,000 is £10,000.

Our calculation. The standard rates on £500,000 give £2,500 + £12,500 = £15,000, so the relief saves £5,000 at that price.

Scotland: LBTT

Revenue Scotland describes the relief as raising the residential nil rate band from £145,000 to £175,000, which can reduce the tax by up to £600. Eligible buyers pay no LBTT on the first £175,000.

Conditions (all must be met): the property is residential and includes a dwelling; you have never owned a residential property anywhere in the world, including by gift or inheritance; you intend to occupy it as your only or main residence; the transaction is not part of linked transactions (with limited exceptions); and the Additional Dwelling Supplement does not apply.

Worked example from Revenue Scotland. On £250,000: 0% on the first £145,000, 2% on the remaining £105,000 (£2,100), less relief capped at £600, gives £1,500. Revenue Scotland notes that its examples use earlier rates and are for illustration, but the bands are the same as today’s.

Wales: no relief

The Welsh Government states: “There’s no first-time buyers’ relief in Wales.” A first-time buyer in Wales pays the standard Land Transaction Tax rates, which start at 0% up to £225,000. See Land Transaction Tax in Wales.

Joint buyers

• England and Northern Ireland: HMRC’s manual says that in a joint purchase every purchaser must meet the conditions.
• Scotland: relief is available only if every buyer meets all the criteria. Revenue Scotland’s example shows a couple who cannot claim because one of them previously owned a dwelling abroad.

If one of you has owned a home before, in either nation, assume you lose the relief and ask your conveyancer to confirm.

What to prepare

Before you instruct a conveyancer, list every property you have ever held an interest in, anywhere in the world, including shares inherited or received as a gift. Say whether you will live in the home as your main residence. These two answers decide whether the relief is claimed in England, Northern Ireland or Scotland. If you are buying with a partner, gather the same information for them, because the answer for the whole purchase depends on both of you.

Which professional to consult

A conveyancer or solicitor checks whether you qualify, claims the relief on the return and pays the tax. A mortgage adviser can include the saving in your cash-needed budget. See the conveyancer and the mortgage adviser. To test your own case, use the stamp duty calculator.