UK Stamp Duty Guide for First-Time Buyers (2026 Rates)
Stamp Duty Land Tax (SDLT) is the tax you pay on property purchases in England and Northern Ireland. As a first-time buyer you get a significant relief — but the April 2025 rule change sharply reduced that relief from where it had been since 2022.
This guide covers the rates that apply now (April 2026), the Scottish (LBTT) and Welsh (LTT) equivalents, and exactly what you'll pay on your purchase.
What changed in April 2025
The temporary stamp duty thresholds introduced in September 2022 expired on 31 March 2025. From 1 April 2025, the thresholds reverted:
| Threshold | Until 31 Mar 2025 | From 1 Apr 2025 (current) |
|---|---|---|
| FTB nil-rate | £425,000 | £300,000 |
| FTB relief cap | £625,000 | £500,000 |
| Standard nil-rate | £250,000 | £125,000 |
If you bought before 1 April 2025, the higher thresholds applied. If you're buying now, the lower thresholds apply — meaning many first-time buyers who would previously have paid £0 will now owe several thousand pounds.
First-time buyer stamp duty thresholds (England & NI, 2026)
| Property price | Rate for first-time buyers |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% (on the slice over £300,000) |
| Above £500,000 | No relief — standard rates apply on the whole price |
Key catch: if your purchase price is even £1 over £500,000, you lose first-time buyer relief entirely and pay the standard rates on the full amount. This is the "£500,001 trap" — and it's particularly cruel in London and the South East where prices cluster around the threshold.
Standard SDLT rates (no relief, current from April 2025)
| Property price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Above £1.5m | 12% |
Worked examples
Use our mortgage calculator to model these — but here's the maths under the current 2026 rules:
Example 1: £275,000 home, first-time buyer - £275,000 is under £300,000 → £0 stamp duty
Example 2: £400,000 home, first-time buyer - £0 on the first £300,000 - 5% on £100,000 = £5,000 - Total: £5,000 (would have been £0 under the pre-April 2025 rules)
Example 3: £550,000 home, first-time buyer - Above £500,000 → no FTB relief - 0% on first £125,000 = £0 - 2% on £125,000 (£125,001–£250,000) = £2,500 - 5% on £300,000 (£250,001–£550,000) = £15,000 - Total: £17,500 (versus £6,250 if you were £50,001 cheaper — a £50,001 price increase costs £11,250 in extra tax)
Example 4: £400,000 home, NOT first-time buyer - 0% on first £125,000 = £0 - 2% on £125,000 (£125,001–£250,000) = £2,500 - 5% on £150,000 (£250,001–£400,000) = £7,500 - Total: £10,000
Who counts as a first-time buyer?
To qualify for the relief, every buyer named on the mortgage and deeds must:
- Have never owned (or part-owned) a property anywhere in the world
- Intend to occupy the property as their main residence
This catches a lot of people out. Common gotchas:
- You inherited a share of a parent's home → you've owned property → you're not a FTB
- You owned a buy-to-let in the past but never lived in it → still not a FTB
- You're buying with a partner who has owned before → neither of you gets the relief
- You're using a joint borrower sole proprietor (JBSP) mortgage where your parent is on the mortgage but not the deeds → relief usually still applies (parent isn't on deeds), but check with your conveyancer
The "every person on the deeds" rule is why some couples register the property in only the FTB's name — but this raises tax and inheritance complications, so always take advice. See our JBSP mortgage guide for one workaround.
When and how do you actually pay?
Stamp duty is paid by your conveyancer within 14 days of completion. They will request the funds from you a few days before completion as part of the final completion statement. You don't deal directly with HMRC.
If you're late, HMRC charges interest plus a penalty (£100 if up to 3 months late, more thereafter).
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland has its own equivalent, with first-time buyer relief lifting the nil-rate band from £145,000 to £175,000. The LBTT thresholds are unchanged from 2024.
| Property price | Standard | First-time buyer |
|---|---|---|
| Up to £145,000 | 0% | 0% (up to £175,000) |
| £145,001 – £250,000 | 2% | 2% (above £175,000 only) |
| £250,001 – £325,000 | 5% | 5% |
| £325,001 – £750,000 | 10% | 10% |
| Above £750,000 | 12% | 12% |
Worked example: £200,000 home, first-time buyer in Scotland - 0% on first £175,000 = £0 - 2% on £25,000 = £500 - Total: £500
Full breakdown: LBTT in Scotland explained.
Wales: Land Transaction Tax (LTT)
Wales does not offer a first-time buyer relief. Everyone pays the same main-residence rates.
| Property price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5m | 10% |
| Above £1.5m | 12% |
Worked example: £300,000 home in Wales - 0% on first £225,000 = £0 - 6% on £75,000 = £4,500 - Total: £4,500
Detail: Land Transaction Tax in Wales.
Stamp duty on second homes and BTL — bigger surcharge since October 2024
The Autumn 2024 Budget (30 October 2024) increased the additional property surcharge in England and Northern Ireland from 3% to 5%, effective immediately. Scotland's Additional Dwelling Supplement also rose, from 6% to 8% from 5 December 2024.
So in 2026, additional residential property purchases attract:
- England & NI: standard SDLT + 5% surcharge across the whole price
- Scotland: LBTT + 8% ADS across the whole price
- Wales: higher residential rates of LTT (replacement rates, not a separate surcharge)
See our stamp duty on second homes guide.
If you sell your old main residence within 3 years of buying the new one, you can reclaim the 5% surcharge — even if you bought the new one first.
Strategies to reduce or eliminate stamp duty
Buy at or just under a threshold. A £300,000 purchase pays £0; a £310,000 purchase pays £500. If you can negotiate the seller down £10,000, you keep the relief threshold and save 5% on every pound over.
Separate fixtures and fittings. Items like furniture, freestanding white goods, and curtains that are not "fixed" can be excluded from the chargeable consideration. The HMRC test is "chattels vs fixtures". Don't get cute — HMRC challenges aggressive splits — but a fair allocation can save real money on properties near a threshold.
Stay under £500,000 if you're a FTB. £499,999 = £9,999 in tax. £500,001 = £15,000+ in tax (because you lose all FTB relief). The £500k threshold is now the most important number to manage in your offer.
Multiple Dwellings Relief was abolished for transactions completing on or after 1 June 2024, so this is no longer available.
Common stamp duty mistakes
- Forgetting to budget for it. It is paid in cash on completion, not added to your mortgage. With the lower thresholds since April 2025, more buyers have a stamp duty bill than before.
- Assuming your conveyancer will spot a relief. Always tell them you're a FTB in writing.
- Misreporting "ever owned" status. This is a criminal offence if deliberate. If you owned a flat in 2008 and don't remember, your conveyancer's identity checks usually pick it up — disclose proactively.
- Buying just over a threshold. £500,001 costs you £8,750+ more in tax than £500,000 — and the gap widens above £925,000.
Get a free mortgage quote — many brokers will sense-check your stamp duty exposure as part of their advice.
Frequently asked questions
Has stamp duty gone up for first-time buyers? Yes. The temporary higher thresholds expired on 31 March 2025. From 1 April 2025 the FTB nil-rate band reverted from £425,000 to £300,000. A buyer purchasing a £400,000 home as a FTB now pays £5,000 — they would have paid £0 before April 2025.
Do I pay stamp duty if I'm gifted a property? Possibly. If there's no mortgage outstanding, no — pure gifts attract no SDLT. If there's a mortgage you're taking on, SDLT is due on the value of the debt assumed.
Is stamp duty negotiable? Not with HMRC, but you can negotiate the purchase price with the seller to bring it under a threshold.
Can I add stamp duty to my mortgage? Not directly. If you have equity remaining you can borrow more (within LTV limits) and use the surplus to pay it. In practice this means borrowing more upfront and paying it through your conveyancer.
What if I'm buying with a partner and only one of us is a FTB? Neither of you gets the relief. Both buyers must be first-time buyers.
Does the £300,000 relief apply if I'm buying through Shared Ownership? Yes, with rules — see our shared ownership guide. You can either pay SDLT on the share you're buying now, or elect to pay on the full market value (rare but sometimes worthwhile).
Will the higher thresholds come back? The temporary thresholds were repeatedly extended in the early 2020s but were not extended again past March 2025. There's no current proposal to raise them again.
This article is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage adviser or solicitor before making a decision.