If you're buying your first home in England or Northern Ireland, you may pay less stamp duty than other buyers, or none at all. But the rules changed in April 2025, and many buyers are still working from outdated figures.
Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland. Scotland has the Land and Buildings Transaction Tax (LBTT) and Wales has the Land Transaction Tax (LTT), both have their own rates and thresholds.
Here's what you need to know about SDLT.
The current rates
First-time buyers pay no stamp duty on the first £300,000 of the purchase price. Anything between £300,001 and £500,000 is taxed at 5%.
If the property costs more than £500,000, you don't get any first-time buyer relief at all, you pay the standard rates on the full price.
The relief only applies if you intend to occupy the property as your main residence.
A few examples:
£250,000 property → £0 stamp duty
£350,000 property → £2,500 (5% on the £50,000 above £300,000)
£450,000 property → £7,500 (5% on the £150,000 above £300,000)
£500,001 property → standard rates apply, no relief
Use the Property Looker stamp duty calculator to work out the exact figure for any property → Stamp Duty Calculator
What changed in April 2025
Between September 2022 and March 2025, the government temporarily raised the thresholds. First-time buyers paid nothing on the first £425,000, with relief available up to £625,000.
Those thresholds dropped back on 1 April 2025:
- The 0% band fell from £425,000 to £300,000
- The relief cap fell from £625,000 to £500,000
In practice, a first-time buyer purchasing at £425,000 went from paying nothing to paying £6,250. If you're working from advice or articles written before April 2025, the numbers will be wrong.
What counts as a first-time buyer
HMRC's definition is stricter than most people expect. You're a first-time buyer if you have never owned a major interest in a dwelling, anywhere in the world.
That includes:
- Property you inherited, even a partial share
- Property you received as a gift
- Property owned abroad
- A share in a property, even if you sold it years ago
It does not include:
- Renting (holding a lease under 21 years doesn't count as ownership)
- Owning commercial property or land without a dwelling
Buying with a partner who already owns
This catches people out. If you're buying jointly, every person named on the purchase must be a first-time buyer. If your partner has previously owned a property, neither of you qualifies for the relief, even if you've never owned anything yourself.
There is a workaround: if only the first-time buyer is named as the purchaser, the relief can apply. But this has mortgage and legal implications, so take advice before going down that route.
If the partner who already owns is named on the purchase, the higher rates for additional residential properties may also apply, though there are exceptions, including where the purchase replaces the buyer's main residence. The detail matters here, so speak to your solicitor.
Shared ownership
If you're buying through shared ownership, you have two options for how stamp duty is calculated:
- Pay based on the full market value of the property, no further stamp duty when you buy more shares later
- Pay based on your initial share only, but stamp duty applies again once you own more than 80%
First-time buyer relief can apply under both options, provided the market value of the property is £500,000 or less.
Do I still need to file a return?
Yes. Even if your stamp duty bill is zero, an SDLT return must generally be filed with HMRC within 14 days of the effective date of the transaction. First-time buyer relief must be claimed on that return.
Your solicitor handles this as part of the conveyancing process, but it's worth knowing, failure to file on time can result in penalties.
Common mistakes
- Assuming the old thresholds (£425,000 / £625,000) still apply — they ended 1 April 2025
- Thinking "first-time buyer" only refers to the UK — it's worldwide
- Forgetting that inherited property disqualifies you
- Buying jointly with someone who already owns and losing the relief entirely
- Not realising that above £500,000, the relief disappears completely — not gradually
- Forgetting that the property must be your intended main residence
Work out your stamp duty
Use the Property Looker stamp duty calculator to see exactly what you'll pay on any property. It's updated to the current 2025/26 rates.
Researching your first home? Look up any property on Property Looker to see its price history, EPC rating, flood risk, and more. all in one place, for free.
A mortgage broker can help you create a budget over your house purchase including any expenses towards stamp duty:
Disclaimer: This article is for general information only and does not constitute tax or financial advice.