Buying your first home is an exciting milestone, but there are a number of additional costs to consider alongside the purchase price. One of the most important is Stamp Duty Land Tax (SDLT).
First-time buyers may be able to benefit from Stamp Duty relief, but how much you pay will depend on the value of the property and whether you meet the eligibility criteria.
In this article, Residential Property expert Edward Carter explains how Stamp Duty works for first-time buyers, who qualifies for first-time buyer relief and the current SDLT rates and thresholds.
Disclaimer: The Stamp Duty Land Tax (SDLT) rates and thresholds referred to in this article are accurate as of 19th October 2026. Tax rules and rates can change, so you should check the latest guidance or speak to one of our professionals before making a decision.
What is stamp duty for first-time buyers?
Stamp duty is a tax that is imposed on certain property and land in England and Northern Ireland. It can apply when you buy the following: -
- A freehold property
- A new or existing leasehold property
- A shared ownership property
- Any transfer of land or property in exchange for payment
First-time buyers may be entitled to SDLT relief, meaning they could pay a reduced amount of stamp duty or, in some cases, no stamp duty at all, depending on the purchase price and their individual circumstances.
Stamp duty rules differ if you live in Scotland or Wales. Scotland use the Land and Buildings Transaction Tax (LBTT), and Wales use the Land Transaction Tax (LTT).
Please refer to the links provided above for more information if you live in Scotland or Wales.
You can read our related article on how stamp duty works for commercial property here.
Do first-time buyers pay stamp duty?
For first-time buyers, whether or not stamp duty is payable is dependant on the price of the property as well as whether you are eligible for relief.
If you are a first-time buyer and the property costs £300,000 or less, no stamp duty will apply. If you are purchasing a property between £300,00 and £500,000. You will only pay 5% on the amount above £300,000.
If you are a first-time buyer and the property costs more than £500,000, you will not be entitled to any relief, and SDLT shall be payable at the normal rate.
Do I qualify for first-time buyer SDLT relief?
To qualify as a first-time buyer, you must:
- Have never owned an interest in a residential property.
- Intend to occupy the property as your main residence.
If you tick these boxes, then yes, you qualify!
If you don’t tick these boxes, then you can find out what stamp duty will be for you here.
What are the current rates of SDLT?
- £0-£125,000 = 0%
- £125,001-£250,000 = 2%
- £250,001-£925,000 = 5%
- £925,000-£1,500,000 = 10%
- £1,500,000+ = 12%
First-time buyer conveyancing solicitors
If you are buying your first home and have questions about Stamp Duty or the conveyancing process, our experienced Residential Property team is here to help.
We can guide you through the legal process of buying your first home, explain what to expect along the way and help make your move as straightforward as possible.
To speak to one of our bright, friendly property experts, call us on 01202 499255 or fill in the form at the top of this page.
Comments