You're eligible for stamp duty relief in England, Scotland and Northern Ireland if you’re a first-time buyer. The threshold before you need to pay stamp duty or LBTT is higher if you qualify as a first-time buyer. There is no first-time buyer relief for land transaction tax in Wales.
Do I pay stamp duty as a first-time buyer?
If you’re a first-time buyer in England or Northern Ireland, you won’t pay anything unless you purchase a property for more than £425,000.
If the property you’re purchasing as a first-time buyer is worth more than £625,000, you won’t qualify for any relief and will need to pay standard stamp duty rates.
In Scotland, first-time buyer relief increases the nil rate to £175,000, though you’ll need to pay standard rates on anything above this.
How much is stamp duty for first-time buyers?
First-time buyers in England and Northern Ireland won’t pay any stamp duty as long as their purchase price is less than £425,000. If you qualify as a first-time buyer and purchase a property between £425,000 and £625,000, you’ll pay 5% on the amount above £425,000.
For example, if you buy your first home for £500,000, you won’t pay any stamp duty on the first £425,000 but will pay 5% on the remaining £75,000, meaning the total amount you’d pay would be £3,750.
You won’t pay any Land and Building Transaction Tax in Scotland if you buy a property for less than £175,000. However, if your property purchase price exceeds this, you’ll pay standard LBTT rates.
Here’s an example: You’re buying your first property in Scotland for £350,000. You won’t pay any SDLT on the first £175,000, 2% on the next £75,000, 5% on the following £75,000 and 10% on the remaining £25,000, meaning your total LBTT bill would be £7,750.
