Last reviewed: May 2026. Rates correct from 1 April 2025.
Most first time buyers in England pay significantly less stamp duty than other buyers, and many pay nothing at all. Here is exactly how the relief works, what you will pay at every price point, and when the rules change.
Initial discussion free. £299 broker fee payable only if you choose to proceed after receiving a formal mortgage offer.
First time buyers in England pay no stamp duty on the first £300,000 of a property purchase, and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, first time buyer relief does not apply and standard rates are charged in full. These thresholds have been in place since 1 April 2025.
Yes, but much less than other buyers. First time buyer relief means you pay no stamp duty at all on purchases up to £300,000, and a reduced rate above that up to £500,000.
Stamp Duty Land Tax (SDLT) is paid to HMRC when you buy a property in England or Northern Ireland above a certain threshold. For most buyers the rates are significant. First time buyer relief was introduced to reduce this burden for people purchasing their first home, and the current thresholds from 1 April 2025 provide meaningful savings for qualifying buyers.
Understanding your stamp duty position matters for two practical reasons: it affects how much cash you need to have ready on completion day, and it affects your overall budget when deciding what price bracket to search in. A first time buyer purchasing at £300,000 saves £5,000 compared to a standard buyer. At £350,000 the saving is still £5,000.
The figures on this page are for England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), both with their own rates.
The table below compares what a first time buyer pays with what a standard buyer pays at each price band. The saving column shows the cumulative benefit of the first time buyer relief.
| Property value | Standard buyer | First time buyer | FTB saving (cumulative) |
|---|---|---|---|
| Up to £125,000 | 0% | 0% | £0 |
| £125,001 to £250,000 | 2% | 0% | Up to £2,500 |
| £250,001 to £300,000 | 5% | 0% | Up to £5,000 |
| £300,001 to £500,000 | 5% | 5% | £5,000 (fixed) |
| Over £500,000 | 5 to 12% | No FTB relief. Standard rates apply on full price. | |
The maximum stamp duty saving for a first time buyer is £5,000, which applies on any purchase from £250,001 to £500,000. On purchases up to £250,000 the saving is up to £2,500. Above £500,000 no relief applies. Rates effective from 1 April 2025.
Over £500,000: First time buyer relief does not apply. Standard SDLT rates are charged on the full purchase price starting from £0, not just the amount over £500,000. A first time buyer purchasing at £510,000 pays the same stamp duty as any other buyer at that price. This threshold is an important one to be aware of when setting your budget.
Enter the purchase price below to see what you will pay as a first time buyer, what a standard buyer would pay at the same price, and the saving the relief gives you.
For illustrative purposes only. Figures are rounded to the nearest pound. Always verify your exact stamp duty liability with your solicitor before exchange of contracts. Tax treatment depends on individual circumstances and may change.
£299 broker fee payable only if you proceed following a formal mortgage offer.
These examples show exactly what a first time buyer pays at four common price points and how that compares to a standard buyer at the same price.
Standard: 0% on £125k + 2% on £125k = £2,500
FTB pays nothing. Standard buyer: 0% on £125k + 2% on £125k + 5% on £50k = £5,000. Saving: £5,000.
FTB pays 5% on £50k above £300k only. Saving vs standard buyer: £5,000.
Above £500k: no FTB relief. Standard rates apply on the full price from £0. Both buyers pay the same.
Figures are illustrative. Always verify your specific stamp duty liability with your solicitor before exchange of contracts.
Once you know what stamp duty you will pay, the next step is finding the right mortgage. We consider a comprehensive range of mortgages from across the market and can help identify lenders that may be suitable, subject to a full assessment of your circumstances.
Speak to a Mortgage Adviser£299 broker fee payable only if you proceed following a formal mortgage offer.
HMRC defines a first time buyer as someone who has never owned a freehold or leasehold interest in a residential property anywhere in the world. The definition is stricter than many people expect. Every buyer named on the purchase must meet it.
Joint purchases: If you are buying jointly and one buyer previously owned a property, neither buyer can claim first time buyer relief. This applies even if the previous ownership was a long time ago or the value was small. Your solicitor will confirm first time buyer status as part of the conveyancing process.
Even genuine first time buyers lose the relief in certain situations. These are worth understanding before you set your budget.
First time buyer relief is not available on any purchase above £500,000. Standard residential SDLT rates apply on the full purchase price from £0 upward. A first time buyer purchasing at £505,000 pays more in stamp duty than a first time buyer purchasing at £499,999. This threshold can materially affect the SDLT payable and is worth factoring into your budget.
If you are buying through shared ownership, you can claim first time buyer relief on the share you are purchasing, provided the full market value of the property does not exceed £500,000. Shared ownership purchases can have different SDLT treatment depending on how the transaction is structured. Your solicitor can confirm the correct position for your specific purchase.
Properties with a commercial element, such as a flat above a shop, are charged at non-residential SDLT rates which are separate from the residential and first time buyer scales. First time buyer relief does not apply to mixed-use transactions.
Non-UK residents pay an additional 2% surcharge on top of standard residential SDLT rates. This applies even if you are a first time buyer and qualifies for the nil-rate band on the standard residential scale. Your solicitor will confirm whether the surcharge applies to your purchase.
Scotland and Wales each have their own property transaction tax with different rates, thresholds and first time buyer rules. The rates on this page apply to England and Northern Ireland only.
First time buyers pay 0% up to £300,000 and 5% on the portion between £300,001 and £500,000. No relief applies above £500,000.
FTB relief availableScotland offers a first time buyer relief that raises the nil-rate threshold above the standard rate. The specific rates are set by the Scottish Government and differ from SDLT. Always verify current Scottish rates with your solicitor.
FTB relief availableWales does not currently offer a specific first time buyer relief equivalent to England or Scotland. Standard LTT rates apply. Rates are set by the Welsh Government and should be verified with your solicitor.
No FTB-specific reliefStamp duty is due within 14 days of completion. Your solicitor calculates the amount owed, submits the SDLT return to HMRC, and makes the payment on your behalf on completion day as part of the funds transfer.
This is an important practical point: stamp duty comes from your own cash, not from your mortgage. When you budget for buying your first home, stamp duty needs to sit alongside your deposit, solicitor fees, survey costs, and moving costs as a separate cash requirement. A first time buyer purchasing at £350,000 needs £2,500 for stamp duty in addition to their deposit.
Your solicitor will send you a completion statement before the completion date showing a full breakdown of all funds required, including stamp duty. This gives you time to confirm the amount is ready and in your account.
Using a Lifetime ISA? The Lifetime ISA bonus can only be released for a qualifying property purchase. The funds go directly to your conveyancer on completion. The bonus does not affect your first time buyer stamp duty status. See our first time buyer schemes guide for more on the Lifetime ISA.
Tax Information Notice
This page provides general information about SDLT rules as understood at the date of last review. Tax treatment depends on individual circumstances and may change. Your solicitor or tax adviser should confirm your exact SDLT liability before exchange of contracts. The rates shown apply to England and Northern Ireland from 1 April 2025.
We can help you understand exactly what stamp duty you will pay, what deposit you need, and which mortgage is most suitable for your situation, considering a comprehensive range of mortgages from across the market to find the most suitable fit.
Initial discussion free. £299 broker fee payable only if you choose to proceed after receiving a formal mortgage offer. Solicitor, valuation and other third-party costs may also apply. Your home may be repossessed if you do not keep up repayments on your mortgage.
Speak to a Mortgage AdviserFinancial promotion: This page is a financial promotion. Woodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). We consider a comprehensive range of mortgages from across the market, but not all lenders or products may be included.
Broker fee: A broker fee of £299 applies if you proceed after receiving a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender.
Stamp duty information: The stamp duty rates shown reflect the position for England and Northern Ireland from 1 April 2025. Rates are set by government and may change. Always verify your stamp duty liability with your solicitor before exchange of contracts.
Risk warning: Your home may be repossessed if you do not keep up repayments on your mortgage.
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