SDLT for First-Time Buyers | What You Need to Know

SDLT for First-Time Buyers: What You Need to Know

Buying your first home is an exciting milestone, but it comes with a lot of new terminology, rules, and financial responsibilities. One of the most important (and sometimes overlooked) costs is Stamp Duty Land Tax (SDLT).

Fortunately, first-time buyers often benefit from special reliefs that reduce or eliminate the amount of SDLT payable.

In this guide, we explain exactly what SDLT is, how it affects first-time buyers, and what support is available to make your first step onto the property ladder more affordable.

What Is SDLT?

Stamp Duty Land Tax (SDLT) is a tax you pay to HMRC when purchasing property or land in England and Northern Ireland. The amount depends on the purchase price, property type, and your circumstances as a buyer.

First-Time Buyer SDLT Relief (2025)

If you're a first-time buyer, you're entitled to SDLT relief on your first home, as long as:

You're buying a residential property
The property will be your main residence
The purchase price is £625,000 or less
You (and anyone you’re buying with) have never owned property anywhere in the world

2025 SDLT Rates for First-Time Buyers

Property Value

Up to £425,000 - 0%
£425,001 to £625,000 - 5% on the portion above £425,000
Over £625,000 - Standard SDLT rates apply (no relief)

Example 1:

Buying for £400,000? You pay £0 SDLT.

Example 2:

Buying for £500,000? You pay 5% on £75,000 = £3,750.

When You’re Not Eligible

You won’t qualify for first-time buyer relief if:

You’ve owned a property before, anywhere in the world
You're buying a buy-to-let or second home
The price is above £625,000
The property is non-residential or mixed-use

In these cases, standard SDLT rates apply, even if you’ve never bought in the UK before.

What Counts as a ‘First-Time Buyer’?

A “first-time buyer” means someone who:

Has never owned freehold or leasehold property before
Is buying their only or main residence
Is purchasing on their own or with others who are also first-time buyers

If one person on the mortgage or deed has owned before, the whole purchase loses the relief.

Standard SDLT Rates (for Reference)

If you're not eligible for relief, here's what you'd pay under the standard 2025 SDLT rates:

Property Value

Up to £250,000 - 0%
£250,001 – £925,000 - 5%
£925,001 – £1.5 million - 10%
Over £1.5 million - 12%

Common Questions from First-Time Buyers

“Do I have to apply for the relief?”

No - the relief should be claimed automatically by your solicitor or conveyancer when they submit the SDLT return. But mistakes do happen, and it’s important to check that it’s applied correctly.

“What if I’ve inherited property?”

Even if you didn’t buy a property before, inheriting a share of a home may disqualify you from first-time buyer relief.

“Can I get a refund if I was eligible but overpaid?”

Yes. If you bought in the last 4 years and didn’t get the relief when you should have, SCA Tax can help you reclaim the overpaid SDLT.

How SCA Tax Can Help

At SCA Tax, we’re experts in SDLT, and we regularly help first-time buyers who:

Didn’t get the relief they were entitled to
Overpaid because of solicitor error or confusion
Need help understanding their eligibility before buying

We offer:

Free eligibility checks
Refund claims for overpaid SDLT (within 4 years)
Pre-purchase reviews to ensure you're getting the correct relief

Our service:

No-win, no-fee
Fast and friendly service
Trusted by homebuyers across the UK

First-time buyer SDLT relief can save you thousands - but only if it’s applied correctly. Make sure you understand your eligibility, check your solicitor’s work, and reach out if you’re unsure.

Already bought your first home in the last 4 years? Let us check if you overpaid.