First Time Buyer Allowance

Be aware that buying a property can take 6 to 18 weeks, especially if you are in a chain. If you want to take advantage of the first-time buyer relief then be aware that time is moving on and you may lose the benefit if the property purchase is not ready to complete (the moving day) by the 31st March 2025.  

Please also note that most banks and building societies will be inundated with applications for mortgages from January 2025 and the sooner you move forward the more likely you are to gain the benefit of the current stamp duty relief. 

You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.

The discount you can claim depends on when you purchase the property.

Discount up to 31 March 2025

You’ll pay: 

• No Stamp Duty Land Tax (SDLT) up to £425,000
• 5% SDLT on the portion from £425,001 to £625,000

If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

For example: You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

•  0% on the first £425,000 = £0
• 5% on the remaining £75,000 = £3,750
• Total SDLT = £3,750

Discount from 1 April 2025

You’ll pay:

• No SDLT up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000

If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.

For example: You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as:

• 0% on the first £300,000 = £0
• 5% on the remaining £200,000 = £10,000
• Total SDLT = £10,000