In England and Northern Ireland, first-time buyer stamp duty relief does not taper away. It vanishes. One pound over £500,000 costs £5,000.
The cliff
First-time buyers pay nothing up to £300,000 and 5% between there and £500,000. Above £500,000 the relief is withdrawn entirely and the standard rates apply to the whole purchase price — not just the excess.
| Price | First-time buyer | Standard rate | Relief worth |
|---|---|---|---|
| £480,000 | £9,000 | £14,000 | £5,000 |
| £495,000 | £9,750 | £14,750 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £500,001 | £15,000 | £15,000 | Nothing |
| £510,000 | £15,500 | £15,500 | Nothing |
| £525,000 | £16,250 | £16,250 | Nothing |
At exactly £500,000 you pay £10,000. At £500,001 you pay £15,000. The extra pound on the price costs £5,000 in tax.
The dead zone
There is a band above £500,000 where paying more for a house leaves you worse off in total. Buying at £500,000 costs £510,000 all in. You have to reach roughly £505,000 before the total outlay at the higher price exceeds that — so every offer between £500,001 and about £505,000 is worse than simply offering the limit.
If you are negotiating in that range, £500,000 is a genuinely rational maximum, and it is worth saying so explicitly to the agent. Sellers do not always realise the buyer's cost curve has a step in it.
Ways to stay under
- Buy fixtures and fittings separately. Carpets, curtains, white goods and furniture can legitimately be bought outside the property price. The amounts must be genuine and reasonable — HMRC challenges inflated apportionments, and your solicitor will advise on what is defensible.
- Negotiate to the limit. A seller may prefer a certain £500,000 to a buyer who cannot complete at £510,000.
- Reconsider whether relief is worth chasing. Above roughly £525,000 the relief was only ever worth £5,000, which may matter less than the right house.
Who counts as a first-time buyer
You must never have owned a dwelling anywhere in the world. That includes:
- An inherited property or share of one, even if you never lived there.
- A property owned abroad.
- A property you were named on in a divorce settlement.
- A property held through a trust where you were a beneficiary.
And every buyer must qualify. If you buy with a partner who has owned before, the relief is lost for the whole transaction — and if they still own that property, the 5% additional property surcharge may apply on top.
Scotland and Wales do it differently
Scotland has first-time buyer relief with no upper price limit. It raises the nil-rate band from £145,000 to £175,000, saving a maximum of £600, but there is no cliff to fall off at any price. LBTT calculator.
Wales has no first-time buyer relief at all — but its £225,000 nil-rate band is the highest in the UK, so most Welsh first-time buyers pay nothing regardless. LTT calculator.
First-time buyer thresholds have changed several times in recent years and are a recurring Budget target. The figures here are for 2026/27 and were verified against HMRC on 7 August 2026 — but if you are reading this months later, confirm before making an offer.