Do First-Time Buyers Pay Stamp Duty?

First-time buyers do pay Stamp Duty in some situations, but many purchases will qualify for relief. The key is the price of the property and where it’s located. 

The relief rules 

In England and Northern Ireland, current first-time buyer relief means you don’t pay Stamp Duty Land Tax (SDLT) on the portion of the purchase price up to £300,000. 

If your property is up to £300,000, you pay nothing. If it’s between £300,001 and £500,000, you pay 5% only on the portion above £300,000. If it’s over £500,000, you no longer qualify for relief – standard rates apply to the whole price, starting from the standard £125,000 threshold. 

For a full breakdown of other costs, see our guide on what to save for besides a deposit. 

Location matters 

These rules apply only to England and Northern Ireland. Wales uses Land Transaction Tax (LTT) and Scotland uses Land and Buildings Transaction Tax (LBTT) – both have their own systems and much lower thresholds for relief. Always ensure your guidance matches the country where you’re buying. 

Next steps 

If you’re at the early planning stage and unsure how much Stamp Duty you might pay, getting tailored advice can make things feel much clearer. Setfords’ residential property solicitors can explain how the current rules apply to your specific purchase, help you budget for completion, and ensure any relief you’re entitled to is correctly claimed. 

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