Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying a home, but first time buyers benefit from significant relief. Here is exactly what you will pay in 2026.
First time buyers in England and Northern Ireland benefit from stamp duty relief that reduces or eliminates the tax on lower-value properties. Following the changes that took effect on 1 April 2025, the first time buyer thresholds reverted from the temporary higher levels introduced during the mini-budget period.
Under the current rules, first time buyers pay:
If the property costs more than £500,000, you lose the first time buyer relief entirely and pay the standard residential rates instead. This is a cliff edge, not a taper — going even £1 over £500,000 means you pay significantly more stamp duty.
Here are some common purchase prices and the stamp duty a first time buyer would owe:
For properties above £500,000, first time buyer relief does not apply. On a £550,000 property, you would pay the standard residential rates, which come to £17,500 — a significant jump compared to £10,000 on a £500,000 purchase.
HMRC's definition is strict. You qualify for first time buyer relief if:
If you are buying jointly with someone who has previously owned property, neither of you qualifies for first time buyer relief. This catches many couples where one partner has owned before. It also applies if you have inherited a property, even briefly, or owned property overseas.
If you do not qualify for first time buyer relief, the standard SDLT rates apply:
On a £350,000 property, a non-first-time buyer would pay £7,500 compared to £2,500 for a first time buyer — a saving of £5,000.
Scotland does not have a specific first time buyer relief equivalent to England's SDLT relief. However, the LBTT bands have a higher starting threshold of £145,000 for all buyers, and there is a separate first time buyer relief that raises this to £175,000. Rates above that differ from England's system.
Wales also operates its own system. LTT has a nil-rate band up to £225,000 for all residential purchases, with no specific first time buyer relief. The rates above £225,000 start at 6% and increase progressively.
Stamp duty must be paid within 14 days of completion. Your solicitor or conveyancer handles this as part of the transaction — they submit the SDLT return to HMRC and pay the tax from the completion funds. You do not need to do anything separately, but you do need to budget for this amount on top of your deposit and other costs.
No. Stamp duty must be paid from your own funds at completion. It cannot be added to your mortgage. This is why it is essential to factor stamp duty into your budget alongside your deposit, solicitor fees, survey costs, and other expenses.
If you are buying below £300,000, stamp duty is not something you need to worry about. Above that threshold, use the simple calculation: take the amount over £300,000 and multiply by 5%. Add this to your savings target alongside your deposit.
A first time buyer mortgage broker will factor stamp duty into your overall affordability assessment and ensure you are budgeting correctly for all upfront costs. They can also advise whether it makes financial sense to stay below certain price thresholds to minimise your stamp duty bill.
If you are unsure about your stamp duty liability or want to understand the full costs of buying, Get Matched Free with an FCA-regulated broker who can walk you through every expense.
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