Last updated: 14 October 2026
How much stamp duty do first-time buyers pay?
In England and Northern Ireland, first-time buyers pay no stamp duty land tax (SDLT) on the first £300,000 of a home costing up to £500,000, and 5% on the part between £300,001 and £500,000. If the price is over £500,000, first-time buyer relief doesn’t apply at all and the standard rates are charged. These thresholds have applied since 1 April 2025, when the temporary higher limits ended.
First-time buyer rates
| Purchase price band | SDLT rate |
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price above £500,000 | No relief; standard rates apply |
Standard rates for comparison
| Band | Rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5m | 10% |
| Over £1.5m | 12% |
Who counts as a first-time buyer
- You’ve never owned a home, or an interest in a home, anywhere in the world
- You’ll live in the property as your main residence
- If buying jointly, every buyer must be a first-time buyer
- Inheriting a share of a home in the past can stop you qualifying
Examples
- £280,000 home: SDLT is nil.
- £450,000 home: 5% on £150,000 = £7,500. A non-first-time buyer would pay £12,500.
- £520,000 home: No relief. Standard SDLT of £16,000.
Buying with a partner who has owned before
If one buyer has owned a home before, no first-time buyer relief applies to the purchase. If that buyer still owns another property, the 5% higher rates for additional dwellings may apply too.
Non-UK residents
Non-UK residents pay a 2% surcharge on top of the rates, including first-time buyer rates.
Scotland and Wales
Scotland uses Land and Buildings Transaction Tax, with first-time buyer relief up to £175,000. Wales uses Land Transaction Tax and has no special first-time buyer relief, but its nil band is £225,000.
Paying and filing
Your solicitor files the SDLT return and pays the tax within 14 days of completion. First-time buyer relief must be claimed on the return.
Shared ownership
Shared ownership buyers can claim the relief. They can pay SDLT on the full market value up front, or in stages as their share increases. Getting advice on which option suits you can save tax.
Common mistakes
- Assuming relief applies to a home just over £500,000, when the whole price is then taxed at standard rates
- Forgetting that one joint buyer who has owned a home before stops relief for everyone
- Not disclosing a property owned abroad, which can lead to penalties later
- Buying through a company, which cannot claim first-time buyer relief
If in doubt, ask your conveyancer to confirm in writing that you qualify before exchange, as the decision affects how much money you need on completion. Plan for SDLT alongside your deposit and legal fees, as your solicitor will need the funds before completion.
Frequently asked questions
Can I claim if I’ve owned a home abroad?
No, any previous ownership counts.
Does a buy-to-let mortgage affect relief?
Yes, the property must be your main home.
Can I get a refund if I overpaid?
Yes, within 12 months of the filing deadline by amending the return.
What if I inherited a share of a property?
That counts as previous ownership.
Related: SDLT vs Land Transaction Tax, SDLT refunds and stamp duty rates.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with stamp duty advice. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
