Rates
| Portion of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
Over £500,000, standard rates apply to the whole price.
Who qualifies
- No buyer has ever owned a home anywhere in the world, including one that was inherited
- You will live there as your main home
- The price is £500,000 or less
- Higher rates don't apply. If any buyer, or a buyer's spouse or civil partner who isn't buying with you, will own another home on completion, higher rates usually apply and relief is lost
Examples
| Price | Tax |
|---|---|
£300,000 home Workings
| £0 |
£450,000 home Workings
| £7,500 |
£600,000 home (over the ceiling) Workings
| £20,000 |
Less common situations
Buying with someone who has owned a home
The relief is lost for everyone, even if you're a first-time buyer yourself. If the other buyer still owns a home on completion, higher rates may apply too. See additional homes.
Your spouse or civil partner owns a home
Spouses and civil partners are treated as one unit for the higher rates, even if only one of you is buying. If your spouse or civil partner will own a home on completion, higher rates usually apply and first-time buyer relief isn't available. This doesn't apply if you're permanently separated. Other exceptions exist, so check HMRC's higher-rates guidance.
You inherited a share of a home
Inheriting a home, or part of one, counts as owning it. That usually means you're no longer a first-time buyer, even if you never lived there.
Buying your first property to let out
No relief: the home must be your main residence. Standard rates apply, as long as you won't own another home.
Non-UK residents
You can still claim the relief, but the 2% surcharge is added to each band. Non-resident rules