Do First-Time Buyers Pay Stamp Duty?

First-time buyers in England and Northern Ireland pay no Stamp Duty on the first £300,000 of a home costing up to £500,000, then 5% on anything between £300,001 and £500,000. If the property costs more than £500,000 the relief doesn’t apply and standard rates are charged on the whole price. Every buyer must be a first-time buyer to qualify.

Buying your first home is exciting, but it’s a big financial step – so it helps to know your costs in advance. One of the largest is Stamp Duty Land Tax (SDLT), and the good news is that first-time buyer relief can save you thousands. Here’s how the relief works, how much you could save, and whether you qualify.

This article covers Stamp Duty in England and Northern Ireland and is general information, not legal advice. Different taxes apply in Wales and Scotland – see below.

How does first-time buyer Stamp Duty relief work?

First-time buyer relief reduces the Stamp Duty Land Tax (SDLT) you pay on your first home. Since 1 April 2025 it works on a tiered basis for properties costing up to £500,000:

• 0% on the portion up to £300,000
• 5% on the portion between £300,001 and £500,000
• No relief if the property costs more than £500,000 – standard rates then apply to the whole price, starting from the standard £125,000 threshold. 

Stamp Duty works like income tax: you pay each rate only on the slice of the price that falls in that band, not on the whole amount.

How much can you save as a first-time buyer?

The relief can be worth several thousand pounds. Some worked examples:

At £500,000 you pay 5% only on the £200,000 above the £300,000 threshold – £10,000, rather than the £15,000 a non-first-time buyer would pay. Above £500,000 the relief falls away entirely, so a £650,000 purchase is taxed at standard rates.

Who qualifies as a first-time buyer?

To qualify, you must never have owned a residential property anywhere in the world. HMRC applies this strictly: it includes homes owned in the UK or abroad, property you inherited, and even a share in a property, however small or however long ago. The home you’re buying must also be the one you’ll live in as your main residence.

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What about joint purchases with a non-first-time buyer?

This catches a lot of couples out. HMRC treats a joint purchase as a single transaction, so everyone buying must be a first-time buyer. If you’re buying with a partner who has owned property before, neither of you can claim the relief, even if it’s your own first purchase.

Do first-time buyers pay Stamp Duty on a buy-to-let or second home?

Relief only applies to a home you’ll live in as your main residence, so you can’t claim it on an investment property. Buy-to-lets and additional properties also attract a 5% surcharge on top of the standard rates, and that surcharge applies even if it’s the first property you’ve ever bought.

How does Stamp Duty work for shared ownership?

With a shared ownership property you can either pay Stamp Duty on the full market value at the outset, or pay in stages as you buy larger shares (known as staircasing). First-time buyer stamp duty relief can apply to shared ownership too, provided you meet the criteria and the full market value isn’t more than £500,000. You can read more on the GOV.UK shared ownership pages.

Do you need to apply for first-time buyer stamp duty relief?

No, your conveyancer claims it for you when they file your SDLT return. You’ll sign a declaration confirming you’ve never owned property before, so be completely accurate: wrongly claiming relief can lead to HMRC penalties, interest and, in serious cases, a charge of up to 100% of the tax due. As the buyer you remain legally responsible for making sure the correct Stamp Duty is paid on time, even though your conveyancer handles the mechanics.

When do first-time buyers pay Stamp Duty?

Stamp Duty is due on completion, the day you legally become the owner, and the return must be filed and the tax paid within 14 days. Your conveyancer collects the money from you before completion and settles it with HMRC as part of your final statement, alongside legal fees, searches and other disbursements.

Common first-time buyer Stamp Duty mistakes to avoid

Check your eligibility carefully before assuming you qualify:

• “I owned a property years ago, and it was abroad.” Ownership anywhere in the world, at any time, disqualifies you.
• “My parents added me to their deeds.” If you’ve been a legal owner, even without buying, you don’t qualify.
• “I inherited a property but signed it over straight away.” You still owned it, however briefly, so the relief is lost.

If you’re at all unsure, raise it with your solicitor before the SDLT return is submitted.

Are there other Stamp Duty reliefs?

Aside from first-time buyer relief, other reliefs and exemptions can apply – for example property left to you in a will, a transfer as part of a divorce or dissolution, right-to-buy purchases, and charities buying for charitable use. Your conveyancer will identify any you’re entitled to; there’s more detail on the GOV.UK reliefs and exemptions pages.

What about Wales and Scotland?

Stamp Duty applies only in England and Northern Ireland. In Wales you’ll pay Land Transaction Tax (LTT) to the Welsh Revenue Authority, which has no first-time buyer relief. In Scotland you’ll pay Land and Buildings Transaction Tax (LBTT) to Revenue Scotland. Both have their own thresholds, so always check the rules for the country you’re buying in. Please note, Setfords can take on conveyancing matters in England and Wales only.

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How Setfords can help

Buying your first home involves a lot of legal steps – reviewing the contract, running searches, managing exchange and completion – and our residential property team guides first-time buyers through all of them every day. You’ll work directly with your own solicitor from start to finish, and we’ll make sure every relief you’re entitled to is claimed correctly.

Last reviewed: July 2026. Rates and thresholds are correct as at 27 July 2026 but can change at fiscal events — check the current position on GOV.UK before relying on them.