Stamp duty for first-time buyers in England (2026): who qualifies and what you pay
A first-time buyer in England pays no Stamp Duty Land Tax on the first £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 the relief is lost and the normal rates apply to the whole price. Every buyer must never have owned a home anywhere in the world, and must be buying it to live in.
Key facts
- No SDLT on the first £300,000 and 5% from £300,001 to £500,000, for purchases from 1 April 2025.
- Above £500,000 there is no relief at all: the standard rates apply to the whole price.
- Every buyer must never have owned a home, or a share of one, anywhere in the world, including one inherited or given.
- The buyer must intend to live in the home as their only or main residence.
- A non-resident first-time buyer still gets the relief, with the 2% surcharge on top.
- A return is still filed when the tax is nil, usually by the conveyancer within 14 days of completion.
How much stamp duty does a first-time buyer pay?
First-time buyer relief replaces the normal Stamp Duty Land Tax (SDLT) bands with two of its own, for homes up to £500,000:
Stamp Duty Land Tax, first-time buyer relief
Charged in bands on the price: each slice is taxed at its own rate, rounded down to the whole unit.
| Slice of the value | Rate on that slice |
|---|---|
| up to £300,000 | 0% |
| over £300,000 | 5% |
Applies when the buyer is a first-time buyer; the buyer owns no other home; it is for your main home; the price is £500,000 or less.
So a first-time buyer pays nothing on a home up to £300,000, and 5% on the part of the price above it. On a £400,000 home that is £5,000, against £10,000 for a buyer who does not qualify.
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £200,000 | £0 | £1,450 | £1,450 | £850 to £2,050 | 0.73% |
| £250,000 | £0 | £1,500 | £1,500 | £900 to £2,100 | 0.60% |
| £300,000 | £0 | £1,500 | £1,500 | £900 to £2,100 | 0.50% |
| £350,000 | £2,500 | £1,500 | £4,000 | £3,400 to £4,600 | 1.14% |
| £400,000 | £5,000 | £1,500 | £6,500 | £5,900 to £7,100 | 1.63% |
| £450,000 | £7,500 | £1,500 | £9,000 | £8,400 to £9,600 | 2.00% |
| £500,000 | £10,000 | £1,500 | £11,500 | £10,900 to £12,100 | 2.30% |
How much stamp duty does a first-time buyer pay on a £400,000 house?
A first-time buyer pays £5,000 on a £400,000 home: nothing on the first £300,000 and 5% on the part of the price above it.
| £400,000 home | SDLT |
|---|---|
| First-time buyer | £5,000 |
| Buyer who has owned a home before, owns none now | £10,000 |
| First-time buyer, not UK resident | £13,000 |
How much stamp duty does a first-time buyer pay on a £450,000 house?
A first-time buyer pays £7,500 on a £450,000 home: nothing on the first £300,000 and 5% on the part of the price above it.
| £450,000 home | SDLT |
|---|---|
| First-time buyer | £7,500 |
| Buyer who has owned a home before, owns none now | £12,500 |
| First-time buyer, not UK resident | £16,500 |
The same bands apply across England, London included: there is no separate London rate or threshold.
What happens above £500,000?
The relief stops completely. For a price above £500,000, the buyer pays the standard bands on the whole price, not just on the part above the limit. One pound over the limit costs thousands:
| Price | SDLT for a first-time buyer |
|---|---|
| £500,000 | £10,000 |
| £500,001 | £15,000 |
Who counts as a first-time buyer?
The test is in Finance Act 2003, Schedule 6ZA, and HMRC explains it in its manual (SDLTM29845). A buyer qualifies only if they have never acquired a major interest in a dwelling, which in practice means owning a freehold or a long lease of a home. HMRC says:
- a home anywhere in the world counts, whatever its value;
- a home received by inheritance or as a gift counts;
- a part share in a home counts;
- a lease with less than 21 years to run does not count.
The buyer must also intend to live in the home as their only or main residence (SDLTM29811). A first purchase bought to let out does not get the relief, even if the buyer has never owned before.
Can a couple get the relief if only one has owned before?
No. On a joint purchase, every buyer must be a first-time buyer (SDLTM29811: “the purchaser or, if there is more than one, each of them”). If one of two buyers has owned a home before, the purchase pays the standard bands:
| Buyers on a £400,000 home | SDLT |
|---|---|
| Both first-time buyers | £5,000 |
| One has owned a home before, but owns none now | £10,000 |
A buyer who still owns a home when the purchase completes is not a first-time buyer, and may also pay the higher rates for additional homes. See stamp duty on second homes.
How did the relief change in April 2025?
Until 31 March 2025 the zero band ran to £425,000 and the relief applied up to £625,000. For purchases with an effective date (normally completion) from 1 April 2025, those limits fell to £300,000 and £500,000 (GOV.UK, temporary increase to thresholds). Many older pages still show the earlier figures.
| First-time buyer, £400,000 home | SDLT |
|---|---|
| Completed before 1 April 2025 | £0 |
| Completed from 1 April 2025 | £5,000 |
Can a non-resident first-time buyer get the relief?
Yes. The relief does not depend on residence. A buyer who is not UK resident pays the first-time buyer bands with the non-resident surcharge of 2% on top. On a £300,000 home that is £6,000. The non-resident surcharge guide explains who counts as resident and how the surcharge can be refunded.
Do first-time buyers pay stamp duty on shared ownership?
The relief can be claimed on the grant of a shared ownership lease, whether the buyer pays SDLT in one go or in stages (SDLTM29875). In both cases the price limit is tested on the market value of the whole home stated in the lease, not on the share bought: it must be £500,000 or less (SDLTM29880, SDLTM29885).
| Paying in one go (market value election) | Paying in stages | |
|---|---|---|
| What the first-time buyer rates apply to | The full market value | The price paid for the first share |
| Later shares (staircasing) | No further SDLT | No relief; no SDLT until the buyer owns more than 80%, then the standard rates (SDLTM29890) |
| Rent under the lease | No SDLT when the relief is claimed | No SDLT when the relief is claimed |
HMRC’s own example is a 50% share of a home with a market value of £450,000, paid for in one go: the buyer pays the first-time buyer rates on the full £450,000, which is £7,500 (SDLTM29880). The calculator works out that case, because it is the same sum as buying the whole home; it does not model shares, rent or staircasing. The election is made on the SDLT return and cannot be cancelled (GOV.UK, shared ownership property).
Does a first-time buyer still file a return?
Yes, for any purchase of £40,000 or more, even when the tax is nil (Finance Act 2003, section 77A). The return is where the relief is claimed. It is due within 14 days of completion, and GOV.UK says the conveyancer usually files it.
What this guide does not cover
- Shared ownership beyond the rules above: the calculator does not work out a share, the rent or staircasing.
- Scotland and Wales, which have their own first-time buyer rules under different taxes.
- Mortgage schemes, deposits and Lifetime ISAs, which are not taxes.
- Other fees on a purchase: see conveyancing and fees in England.
Questions people ask
Do first-time buyers pay stamp duty in 2026?
Not on homes up to £300,000. Between £300,001 and £500,000 they pay 5% on the part above £300,000, so £10,000 at £500,000. Above £500,000 they pay the normal rates on the whole price.
If my partner has owned a home before, can we still get first-time buyer relief?
Not on a joint purchase. HMRC's manual says each buyer must be a first-time buyer. If one of the buyers has ever owned a home, or part of one, anywhere in the world, the relief is not available.
Does a home I owned abroad or inherited stop me being a first-time buyer?
Yes. HMRC counts a home or a share of a home owned anywhere in the world, whatever it was worth, including one received by inheritance or as a gift. A lease that had less than 21 years to run does not count.
What happens if the price is just over £500,000?
The relief is lost on the whole purchase. At £500,000 a first-time buyer pays £10,000; at £500,001 the standard bands apply and the tax is £15,000.
Do I need to file a stamp duty return if I pay nothing?
Yes, for any purchase of £40,000 or more. The return is how the relief is claimed. Conveyancers usually file it on completion; the deadline is 14 days after completion.
Is stamp duty different in London for first-time buyers?
No. Stamp Duty Land Tax has one set of bands for the whole of England, London included. A first-time buyer in London pays nothing up to £300,000 and 5% on the part from £300,001 to £500,000, the same as anywhere else in England.
Sources
- Stamp Duty Land Tax: residential property rates (first-time buyers)GOV.UK (HM Revenue and Customs)
- Budget 2026: overview of tax legislation and rates, Annex A (first-time buyer rates from 1 April 2025)HM Treasury and HM Revenue and Customs
- SDLTM29811: first-time buyers relief, availability of the reliefHMRC Stamp Duty Land Tax Manual
- SDLTM29845: definition of a first-time buyer (Finance Act 2003, Schedule 6ZA, paragraph 6)HMRC Stamp Duty Land Tax Manual
- Finance Act 2003, Schedule 6ZA (relief for first-time buyers)legislation.gov.uk
- Stamp Duty Land Tax: temporary increase to thresholds (ended 31 March 2025)HM Revenue and Customs
- Finance Act 2003, section 77A (purchases under £40,000)legislation.gov.uk
- Stamp Duty Land Tax: overview (paying within 14 days, who files)GOV.UK (HM Revenue and Customs)
- Stamp Duty Land Tax: shared ownership property (paying in one go or in stages, the 80% rule)GOV.UK (HM Revenue and Customs)
- SDLTM29875: first-time buyers relief, interaction with shared ownershipHMRC Stamp Duty Land Tax Manual
- SDLTM29880: shared ownership, market value electionHMRC Stamp Duty Land Tax Manual
- SDLTM29885: shared ownership, paying SDLT in stagesHMRC Stamp Duty Land Tax Manual
- SDLTM29890: shared ownership, staircasing transactionsHMRC Stamp Duty Land Tax Manual
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Which?: Conveyancing, what it is and what it costs (29 May 2026)Secondary source
- The Land Registration Fee Order 2024 (SI 2024/931)Official source
- GOV.UK: Stamp Duty Land Tax, residential property ratesOfficial source