Facts to know
These tax savings can make a real difference to your budget. They help you put more towards your deposit or home improvements instead of tax.
Our Pie.tax property calculator, which also serves as a stamp duty calculator, can help you instantly work out your exact Stamp Duty liability as a first-time buyer. Or if you’re just here to get to grips with it all, let’s break it down!
What Counts as a First-Time Buyer for Stamp Duty?
To qualify for the relief, you must never have owned a property anywhere in the world before. This includes inherited properties or those you’ve owned with someone else.
The property must be your main home too. The property must be your primary residence to qualify for the relief. Buy-to-let investments don’t qualify for the special rates.
If you’re buying with someone else, both of you need to be first-time buyers to get the full relief.
Stamp duty relief is only available for main residences and does not apply to investment or secondary properties.
How Much Stamp Duty First-Time Buyers Pay in 2025
The good news is that in 2025, first-time buyers pay nothing on properties up to £425,000. This is a significant saving right from the start, thanks to the updated nil rate threshold and new stamp duty thresholds introduced by the government.
You’ll pay 5% on the portion of the property value between £425,001 and £625,000. This is part of the rate structure and the specific stamp duty rates for first-time buyers, where the 5% applies only to the amount above the threshold.
These stamp duty changes and duty changes came into effect on 1st April 2025. The new rules and new structure directly impact how much first-time buyers pay stamp duty.
If the property price exceeds £625,000, the standard stamp duty land tax rates apply to the entire property value.
These changes are part of the broader stamp duty changing landscape as of April 2025, so buyers should be aware of the current stamp duty rate and how it applies to their property price.
Real-Life Examples of First-Time Buyer Stamp Duty in 2025
Here are some example stamp duty calculations for first-time buyers:
For a property valued at £300,000 in Manchester, you’d pay absolutely nothing in Stamp Duty as a first-time buyer. That’s a saving of £5,000 compared to regular buyers!
If you’re buying a home in Bristol with a property price of £450,000, you’d pay just £1,250 (5% on the £25,000 above the threshold). This applies to homes priced within the first-time buyer relief limits.
For properties costing £600,000 in London, your bill would be £8,750. This is still a significant saving on the £15,000 a non-first-time buyer would pay for properties valued at this level.
When I bought my first flat last year, I saved nearly £3,000 through first-time buyer relief. That unexpected windfall paid for all my new furniture.
Stamp Duty must be paid within 14 days of the completion date of your property purchase. These examples apply to month onwards homes priced within the new thresholds from April 2025 onwards.
When First-Time Buyers Don't Get Relief
If your first property costs more than £625,000, you’ll unfortunately pay the standard rates on the entire purchase price. Not just the portion above £625,000.
Buying a mixed-use property or commercial building? The relief won’t apply, even if you’ve never owned property before. Relief also does not apply if you are purchasing an investment property, a second home, or an additional property.
Joint purchases can be tricky too. If you’re buying with someone who’s owned before, or if either buyer owns more than one property or is among multiple property owners, you’ll usually pay the standard rates. Multiple properties and leasehold properties may have different stamp duty implications.
These rules can affect home buyers, home movers, and those looking to climb the property ladder.
How to Claim Your First-Time Buyer Relief
Claiming is straightforward you simply tick the first-time buyer relief box when completing your Stamp Duty return, and follow the instructions for paying or how to pay stamp duty as part of the process. Most people find this process quite simple.
This must be done within 14 days of the completion date, so don’t forget! Missing this deadline can result in penalties.
Your solicitor or conveyancer will usually handle this for you. It’s worth checking they’ve applied the relief correctly to avoid overpaying and to ensure you pay stamp duty properly when purchasing your property.
Eligibility for first-time buyer relief may also depend on being a UK resident.
Final Thoughts
First-time buyer relief continues to be a valuable boost for new homeowners in 2025. It potentially saves you thousands on your first property or land purchase.
Understanding these thresholds early helps you budget more accurately. It might even impact buying decisions and influence which properties or land you consider within your price range.
Remember that regional variations exist, especially in Scotland and Wales. These nations have different systems that apply to property or land purchases. In England and Northern Ireland, Stamp Duty Land Tax applies, while in Wales, the Land Transaction Tax (LTT) and its specific land transaction tax structure are in place.
The LTT structure and bands remain under review, and LTT remains subject to potential changes. Many first time buyer homes in Wales fall close to the zero-rate threshold, and Welsh home movers face different rates. The government regularly reviews these taxes, which can affect investors and impact buying decisions.
Stamp duty and land transaction taxes apply to both property or land, and the value of the land is included in the calculation.
Pie tax: Simplifying how much Stamp Duty do first time buyers pay in 2025 Tax
Figuring out exactly how much Stamp Duty you'll pay shouldn't give you a headache. Pie.tax gives you instant, accurate calculations based on your specific situation.
Our friendly property tax experts can check if you qualify for first-time buyer relief. They'll also flag any other exemptions you might be entitled to.
We store all your property documents securely in one place. This makes it easy to complete your Stamp Duty return correctly and on time.
The app sends timely reminders about filing deadlines. You'll never miss important tax dates or risk penalties when buying your first home.
Curious to see how it works? Take a look at the Pie tax app to discover how we can make your first home purchase smoother.
