Find out exactly how much stamp duty you'll pay on your first home. First-time buyers pay no SDLT on the first £300,000 and benefit from reduced rates up to £500,000.
Reduced stamp duty rates for first-time buyers in England and Northern Ireland, effective from 1 April 2025.
Properties up to £500,000
If the purchase price exceeds £500,000, standard rates apply to the full amount — first-time buyer relief is lost entirely.
For comparison — moving home
Standard rates apply if you do not qualify for first-time buyer relief.
First-time buyer vs standard
Common questions about SDLT relief for first-time buyers in England and Northern Ireland.
Relief is available on properties up to £500,000, with no tax on the first £300,000.
First-time buyers benefit from stamp duty relief on properties costing up to £500,000 in England and Northern Ireland. You pay no SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000.
If the property costs more than £500,000, the relief is lost entirely and standard rates apply to the full purchase price.
To qualify, you must never have owned or part-owned a property anywhere in the world — including inherited property, even if you sold it immediately and never lived in it.
You must never have owned or part-owned any property worldwide.
To qualify for first-time buyer relief, you must never have owned or part-owned a residential property anywhere in the world. This includes inherited property — even if you sold it immediately and never lived in it — as well as any property held jointly with another person.
If you are buying with another person, both buyers must be first-time buyers to qualify. If one of you has previously owned a property, you will pay standard rates on the full purchase price.
Yes, but the rules depend on whether you elect to pay SDLT on the market value or your share.
First-time buyers purchasing through a shared ownership scheme can claim SDLT relief. If you elect to pay tax on the full market value at the time of purchase, the first-time buyer thresholds apply to that value — so the property must be worth £500,000 or less.
Alternatively, you can choose to pay SDLT only on your initial share. In this case, the first-time buyer thresholds apply to the value of your share, but you may owe additional SDLT when you staircase (buy further shares) in the future.
You lose first-time buyer relief entirely and pay standard SDLT rates.
First-time buyer relief is only available on properties costing £500,000 or less. If the purchase price is even £1 over this threshold, the relief disappears entirely and you pay standard SDLT rates on the full amount — there is no tapering.
For properties near this boundary, it may be worth negotiating the price below £500,000 if possible, as the tax saving can be substantial. On a £500,000 property, first-time buyer relief saves you £8,750 compared to standard rates.
Rates reverted to pre-2022 levels from 1 April 2025, with a nil-rate band of £125,000.
From 1 April 2025, the SDLT thresholds reverted to their pre-September 2022 levels. Here are the current standard residential rates for England and Northern Ireland:
| Purchase price band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-time buyers pay 0% on the first £300,000 and 5% on £300,001 to £500,000, provided the property costs £500,000 or less.
Within 14 days of completion — your solicitor usually handles this.
You must file an SDLT return and pay any stamp duty owed within 14 days of completion in England and Northern Ireland. In Scotland and Wales, the deadline is 30 days.
Your solicitor or conveyancer will typically handle this on your behalf, and most will request the funds before completion. Late filing or payment can result in penalties and interest charges from HMRC.
This applies whether you are purchasing as an individual or through a limited company.
Technically yes, but it increases your borrowing costs significantly over time.
You can increase your mortgage to cover stamp duty by borrowing more and using the freed-up deposit funds to pay SDLT. However, over a 25-year term at 5%, that extra borrowing will cost roughly 80% more in interest.
It can also push your loan-to-value ratio into a less competitive bracket. For buy-to-let investors, a larger mortgage may mean your rental income no longer meets lender coverage requirements.
Where possible, paying stamp duty from savings is the more cost-effective approach.
Yes — Scotland uses LBTT and Wales uses LTT, each with different rates and thresholds.
Yes. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), each with their own thresholds and rates.
| England & NI | Scotland | Wales | |
|---|---|---|---|
| Tax name | SDLT | LBTT | LTT |
| Additional property surcharge | 5% | 8% | 5% |
| Non-UK resident surcharge | 2% | None | None |
| First-time buyer relief | Yes | Yes | No |
| Payment deadline | 14 days | 30 days | 30 days |
Our calculator covers SDLT for England and Northern Ireland, as well as LTT for Wales — use the country toggle to switch between them.
Everything you need to know about stamp duty relief when buying your first home in 2025/26.
First-time buyers in England and Northern Ireland benefit from significant stamp duty relief. You pay no SDLT on the first £300,000 of a property, and just 5% on the portion between £300,001 and £500,000. This can save you up to £8,750 compared to standard rates.
The relief is automatic — you don't need to apply for it separately. Your solicitor will claim it as part of your SDLT return when you complete the purchase.
To qualify, you must never have owned or part-owned a residential property anywhere in the world. This includes inherited property — even if you sold it immediately and never lived in it — as well as any property held jointly with another person.
If you're buying with someone else, both buyers must be first-time buyers. If one person has previously owned a property, the relief is lost and standard rates apply to the full purchase price.
First-time buyer relief only applies to properties costing £500,000 or less. If the purchase price exceeds this threshold by even £1, the relief disappears entirely and you pay standard rates on the full amount. There is no tapering — it's an all-or-nothing threshold.
For properties near this boundary, it may be worth negotiating the price below £500,000. On a £500,000 property, first-time buyer relief saves you £8,750 compared to standard rates.
First-time buyers purchasing through a shared ownership scheme can claim SDLT relief. You can either pay tax on the full market value (applying FTB thresholds to the total value) or on your initial share only.
Choosing to pay on the market value is often simpler and can avoid further SDLT when staircasing. However, if the full market value exceeds £500,000 you won't qualify for FTB relief that way — paying on your share may be more beneficial in those cases.
Relief varies across the UK nations. England and Northern Ireland offer the relief described above. Scotland provides a separate first-time buyer relief for LBTT, with no tax on the first £175,000. Wales does not offer any specific first-time buyer relief — the standard £225,000 nil-rate band applies to everyone.