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First-time buyer
Most first-time buyers pay no stamp duty on homes up to £300,000, with relief tapering up to £500,000. Here's how the rules, rates and thresholds work in practice.
Since 1 April 2025, first-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax (SDLT) on properties up to £300,000. Between £300,001 and £500,000, relief still applies to the lower portion of the price, so you only pay 5% on the amount above £300,000. If the purchase price is over £500,000, first-time buyer relief does not apply at all and standard SDLT rates are charged on the full price.
To qualify, every buyer named on the property must be a genuine first-time buyer who has never owned a residential property anywhere in the world. Relief also has to be claimed on your solicitor's SDLT return - it isn't applied automatically. Full details are available from HMRC's stamp duty guidance.
First time buyer stamp duty 2026 rules mean many buyers pay less tax - or none at all - when they purchase their first home in England or Northern Ireland. Stamp Duty Land Tax (SDLT) is a tax charged on property purchases above a set threshold, and first-time buyer relief reduces, or removes, that charge for people who meet the qualifying criteria.
Relief isn't applied automatically. It has to be claimed on the SDLT return that your solicitor or conveyancer submits to HMRC when your purchase completes, so it's worth checking this has been done correctly. This guide is part of our wider collection on first time buyer mortgages.
The table below shows the current first-time buyer stamp duty rates alongside the standard rates that apply to buyers who don't qualify for relief.
The nil-rate threshold for first-time buyers dropped from £425,000 to £300,000 on 1 April 2025. This has a real impact on cost: a first-time buyer purchasing a property at £400,000 now pays £5,000 in stamp duty, where they would have paid nothing under the previous threshold.
These examples show how the first-time buyer stamp duty rates apply at different price points.
Stamp duty has to be paid from your own savings on completion - it can't be added to your mortgage. That means you need to budget for it separately from your deposit, which we explain in more detail later in this guide.
Start setting aside money for stamp duty as soon as you begin house-hunting, separate from your deposit savings. It's easy to earmark all your savings as 'deposit' and then find yourself short when the stamp duty bill lands.
First-time buyer mortgages
Our advisors compare a wide range of lenders to help you understand your options as a first-time buyer.
To claim first-time buyer stamp duty relief, you need to meet HMRC's definition of a first-time buyer, and it's stricter than many people expect.
If you're buying with someone else and only one of you is a genuine first-time buyer, relief isn't available on any part of the purchase. Standard stamp duty rates apply to the whole price.
For example, a couple buying a home at £350,000 where one partner has owned property before would pay £7,500 in stamp duty at standard rates, compared with £2,500 if both buyers qualified for first-time buyer relief.
Owning a residential property anywhere in the world, not just the UK, disqualifies you from first-time buyer relief. This includes inherited property and, in some cases, property held in trust for your benefit. If you're unsure whether a previous or overseas interest in a property affects your eligibility, it's worth confirming with your solicitor before you make an offer.
Eligibility
You've never owned a home
You must never have owned a residential property, anywhere in the world, either outright or with a share in one.
Every buyer must qualify
On a joint purchase, all buyers named on the deed need to be first-time buyers. If just one of you has owned before, relief isn't available to either of you.
Inherited property counts
If you've inherited an interest in a property, even a small share, this can disqualify you from first-time buyer relief.
Trust property may count too
If a property has been held in trust for your benefit, this may also affect your eligibility - check with your solicitor if this applies to you.
If you're buying through a shared ownership scheme, you have a choice about how you pay stamp duty.
If the total market value of the property is £300,000 or less, first-time buyers may pay no stamp duty at all on their purchased share.
The first-time buyer stamp duty rates described above apply in England and Northern Ireland. Scotland and Wales have their own property transaction taxes, with different thresholds and rules.
We arrange mortgages for buyers across England, Scotland, Wales and Northern Ireland, and can help you understand how the local tax rules affect your budget. Speak to an advisor for guidance specific to where you're buying.
Stamp duty isn't something you pay directly to HMRC yourself in most cases - your solicitor or conveyancer handles the return and payment as part of completing your purchase.
Payment process
Your solicitor submits the SDLT return
Your solicitor or conveyancer files the Stamp Duty Land Tax return with HMRC on your behalf as part of completing your purchase.
Payment is due within 14 days
The return and any stamp duty owed must be submitted and paid within 14 days of completion.
Late filing carries a penalty
Missing the deadline triggers an automatic £100 fine, with further penalties if the return is more than 3 months overdue.
Relief must be claimed on the return
First-time buyer relief isn't applied automatically - your solicitor needs to claim it on the SDLT return, so it's worth confirming this has been done.
One of the most overlooked parts of buying your first home is that stamp duty has to come out of your own savings - it can't be added to your mortgage. This means the money you set aside for stamp duty isn't available to boost your deposit.
Say you've saved £50,000 towards a £350,000 property. If £2,500 of that goes towards stamp duty, you're left with £47,500 as your actual deposit - around 13.6% of the purchase price rather than 14.3%. That might not sound like much, but it can be enough to push you into a higher loan-to-value band, which may narrow the range of mortgage deals available to you.
When you're budgeting for your first home, treat stamp duty as a separate line item from your deposit, not part of it. Buyers who don't plan for this sometimes find their deposit is smaller than expected right when they need it most.
Your home may be repossessed if you do not keep up repayments on your mortgage. It's worth thinking carefully about your overall budget, including stamp duty, legal fees and moving costs, before committing to a purchase.
For more on the wider costs of buying, see our guides to how much can I borrow as a first-time buyer and our first time buyer deposit guide. If existing debt is affecting how much deposit you can put down, it may be worth looking into a debt consolidation mortgage before you start house-hunting.
If you're worried about affordability, or you're juggling other debts alongside your house purchase, MoneyHelper provides impartial guidance on budgeting and managing debt. You can also call them on 0800 138 7777.
Common questions
No. These schemes, and the government bonus that comes with them, can only be put towards the purchase price of your home, not towards stamp duty. You'll need to budget for stamp duty separately from your ISA savings and deposit.
Yes, new-build purchases are treated the same as any other property purchase for stamp duty purposes. If you're a first-time buyer, you'll pay the same first-time buyer rates on a new-build as you would on an existing home, based on the purchase price.
If you buy jointly and one of you has owned a residential property before, in the UK or abroad, you can't claim first-time buyer relief. Standard stamp duty rates apply to the full purchase price, even though one of you would otherwise qualify.
First-time buyer relief isn't applied automatically. Your solicitor or conveyancer needs to claim it when they submit your SDLT return to HMRC, so it's worth confirming with them that the relief has been applied correctly.
No, stamp duty can't be added to your mortgage. It has to be paid separately from your own savings, on top of your deposit, which is why it's worth budgeting for it early in your house-hunting.
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