Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs of buying a home in the UK. As a first-time buyer, you're entitled to relief that reduces or eliminates this cost, but the rules changed in April 2025. Understanding exactly what you'll pay helps you budget accurately and avoid nasty surprises on completion day.
Stamp Duty Thresholds for First-Time Buyers (2026)
From 1 April 2025, first-time buyer stamp duty thresholds returned to their pre-2022 levels. First-time buyers pay no stamp duty on the first £300,000 of a property's purchase price (down from the temporary £425,000 threshold). You pay 5% on the portion between £300,001 and £500,000. Above £500,000, you lose the first-time buyer relief entirely and pay standard rates. In England and Northern Ireland, standard rates apply; Scotland has its own Land and Buildings Transaction Tax (LBTT); Wales has Land Transaction Tax (LTT).
- Up to £300,000: 0% (first-time buyer relief)
- £300,001 – £500,000: 5% on the portion above £300,000
- Above £500,000: first-time buyer relief not available, standard rates apply
- Maximum saving from first-time buyer relief: £5,000 (compared to standard purchaser)
- Scotland and Wales have different tax regimes
How Much Will You Pay? Real Examples
Let's make this concrete. Buying at £250,000 as first-time buyer: £0 stamp duty. Buying at £350,000: 5% of £50,000 = £2,500. Buying at £450,000: 5% of £150,000 = £7,500. Buying at £500,000: 5% of £200,000 = £10,000 (maximum with FTB relief). Buying at £550,000 as first-time buyer: no FTB relief available, so standard rates apply (0% to £125,000, 2% to £250,000, 5% above), meaning you pay £17,500 total. Compare this to buying at £495,000 where you'd pay only £9,750.
- £250,000 purchase: £0 SDLT
- £350,000 purchase: £2,500 SDLT
- £450,000 purchase: £7,500 SDLT
- £500,000 purchase: £10,000 SDLT (maximum relief point)
- £550,000 purchase: £17,500 SDLT (no first-time buyer relief)
Who Qualifies as a First-Time Buyer?
You're a first-time buyer if you've never previously owned a residential property, either in the UK or abroad. This includes inherited property: if you inherited a share in a property, you may not qualify. The property must be your main residence (not buy-to-let). If you're buying jointly, all buyers must be first-time buyers. If one person is a first-time buyer and the co-purchaser isn't, you lose the relief entirely, which catches many couples out.
- Never previously owned residential property (UK or abroad)
- Property must be your main residence
- Inherited property can disqualify you
- Joint purchase: all parties must be first-time buyers
- Property bought through a company: not eligible for first-time buyer relief
Scotland and Wales: Different Rules
Scotland uses Land and Buildings Transaction Tax (LBTT) instead of SDLT. First-time buyers in Scotland pay no LBTT on the first £175,000 (standard nil-rate band is £145,000, with first-time buyer relief adding £30,000). Wales uses Land Transaction Tax (LTT) with a nil-rate band of £225,000 and no separate first-time buyer relief. If you're buying in Scotland or Wales, use the relevant government calculators to get accurate figures.
- Scotland (LBTT): nil-rate up to £175,000 for first-time buyers
- Wales (LTT): nil-rate up to £225,000 (no additional FTB relief)
- Use the Revenue Scotland or Welsh Revenue Authority calculators
- Rules on who qualifies as first-time buyer are similar but check local guidance
Does using a Lifetime ISA or a family gift change my stamp duty?
No. SDLT is calculated on the full purchase price, however you fund it, so a Lifetime ISA, gifted deposit or mortgage makes no difference. You still get first-time buyer relief on homes up to £500,000. Note that a Lifetime ISA can only be used on a home costing £450,000 or less.
When is stamp duty paid?
SDLT must be paid within 14 days of completing your property purchase. Your solicitor or conveyancer usually handles this for you as part of the buying process.
Is stamp duty included in mortgage calculations?
Not usually. Stamp duty is paid in cash at completion, so budget for it from your savings alongside the deposit rather than assuming you can borrow it. Our stamp duty calculator shows how much to set aside.
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- first time buyer
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- buying a home uk