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What The First-Time Buyer Stamp Duty Calculator Works Out
- SDLT due as a first-time buyer: nothing on the first GBP 300,000 and 5% on the part between GBP 300,000 and GBP 500,000, provided the whole price is GBP 500,000 or less. On a GBP 350,000 first home that is GBP 2,500.
- Without the relief: the standard England and Northern Ireland bands on the same price (0% to GBP 125,000, 2% to GBP 250,000, 5% to GBP 925,000). GBP 350,000 would cost GBP 7,500 without the relief.
- Relief saves you: the difference between the two, up to a maximum of GBP 10,000 at exactly GBP 500,000. Many buyers of homes under GBP 300,000 save the whole bill.
- Who qualifies: everyone buying must never have owned or part-owned residential property anywhere in the world, including inherited property, and must intend to live in the home. Shared ownership purchases have their own election rules.
- Co-buyer who has owned before (advanced): buying with a partner who has owned before means no relief for anyone on the purchase, so the whole price reverts to the standard bands.
- Cash needed on completion (advanced): deposit at your chosen percentage plus SDLT plus legal and other fees. First-time buyers commonly put down 5% to 10%; a 10% deposit on GBP 350,000 is GBP 35,000.
- Cliff-edge check (advanced): the relief has a hard edge at GBP 500,000. Under the cap this shows how much headroom you have; over it, how much extra tax comes from crossing the line. Paying GBP 501,000 instead of GBP 500,000 adds about GBP 5,050 of tax, so negotiating under the cap can be worth more than the discount itself.
- Same purchase in Scotland and Wales (advanced): Scotland's LBTT gives first-time buyers a GBP 175,000 nil-rate band (worth up to GBP 600), while Wales has no first-time buyer relief at all and relies on its GBP 225,000 threshold for everyone.
- Filing: your conveyancer files the SDLT return at completion. A guide only, not tax advice.
Source and further reading: GOV.UK (HMRC): Stamp Duty Land Tax.