Stamp Duty for First Time Buyers UK 2026
First-time buyers in England and Northern Ireland pay 0% stamp duty on the first £425,000 of properties costing up to £625,000. Above £425,000 (up to £625,000), 5% applies to the excess. If the property costs more than £625,000, standard rates apply in full with no relief.
FTB Stamp Duty = £0 (on first £425,000) + 5% × (Purchase Price – £425,000) [only if property ≤ £625,000]
First-time buyer stamp duty relief is one of the most valuable tax breaks available to new homeowners in the UK. Since its introduction, it has saved hundreds of thousands of buyers thousands of pounds each, making that crucial first step onto the property ladder more affordable.
Our calculator shows you exactly how much stamp duty you’ll pay as a first-time buyer, how much you’ll save compared to standard rates, and what happens if your purchase exceeds the relief thresholds. We cover England, Northern Ireland, Scotland and Wales.
What This Means
If your property costs £425,000 or less, you pay no stamp duty at all. Between £425,001 and £625,000, you pay 5% on the amount above £425,000. Above £625,000, you lose the relief entirely and pay standard rates on the full purchase price. Both purchasers must be first-time buyers to qualify.
First-Time Buyer SDLT Rates (2026)
The following stamp duty rates apply to first-time buyers in England and Northern Ireland from April 2025:
| Purchase Price Band | FTB Rate | Standard Rate (for comparison) |
|---|---|---|
| Up to £425,000 | 0% | 0% (up to £250,000 only) |
| £425,001–£625,000 | 5% | 5% |
| Over £625,000 | No relief – standard rates apply | Standard rates in full |
Key point: The FTB relief works as a cliff edge at £625,000. A property costing £625,000 attracts £10,000 in SDLT (5% on £200,000). A property costing £626,000 attracts £18,800 (standard rates on the full amount). That extra £1,000 in purchase price costs £8,800 more in stamp duty.
Worked Examples: FTB Savings
See how much first-time buyers save compared to standard rates at different price points:
| Purchase Price | FTB Stamp Duty | Standard Stamp Duty | FTB Saving |
|---|---|---|---|
| £200,000 | £0 | £0 | £0 (both nil) |
| £300,000 | £0 | £2,500 | £2,500 |
| £400,000 | £0 | £7,500 | £7,500 |
| £425,000 | £0 | £8,750 | £8,750 |
| £500,000 | £3,750 | £12,500 | £8,750 |
| £600,000 | £8,750 | £17,500 | £8,750 |
| £625,000 | £10,000 | £18,750 | £8,750 |
| £626,000 (no relief) | £18,800 | £18,800 | £0 |
The maximum saving from first-time buyer relief is £8,750, achieved on any property priced between £425,000 and £625,000.
Who Qualifies as a First-Time Buyer?
HMRC defines a first-time buyer as an individual who has never owned an interest in a residential property, anywhere in the world. Key eligibility rules:
- Never owned before: You must never have owned or part-owned a residential property, either in the UK or abroad. This includes inherited property if it was residential.
- Both buyers must qualify: If buying jointly, both purchasers must be first-time buyers. If one person has owned before, the relief is lost entirely for the whole purchase.
- Must be your residence: The property must be intended as your main residence. You cannot use FTB relief for a buy-to-let or holiday home.
- Property value limit: The purchase price must not exceed £625,000. There is no partial relief above this threshold.
- Previous ownership abroad: If you’ve previously owned property abroad (even inherited), you may not qualify. HMRC can check this.
Common misconception: Being a first-time buyer on a mortgage application is different from the HMRC definition. Some people who are treated as first-time buyers by their lender may not qualify for stamp duty relief.
First-Time Buyer Relief in Scotland and Wales
Scotland and Wales have their own first-time buyer provisions:
| Country | Tax Name | FTB Relief | Nil-Rate Threshold | Max Property Value |
|---|---|---|---|---|
| England & NI | SDLT | Yes | £425,000 | £625,000 |
| Scotland | LBTT | Yes | £175,000 (vs £145,000 standard) | No limit |
| Wales | LTT | No | N/A | N/A |
Scotland: First-time buyers benefit from an increased nil-rate band of £175,000 (compared to £145,000 for other buyers), saving up to £600. Unlike England, there is no upper property value limit for the relief to apply.
Wales: The Welsh Government does not currently offer any first-time buyer relief on Land Transaction Tax. First-time buyers pay the same rates as everyone else. The Welsh Government has stated it believes the £225,000 nil-rate threshold already provides sufficient support for first-time buyers.
Tips for First-Time Buyers to Minimise Costs
Beyond stamp duty relief, here are strategies to reduce your costs as a first-time buyer:
- Stay under the £625,000 threshold: If your budget is near this level, negotiate hard to stay below it. The stamp duty cliff edge means £625,000 costs £10,000 in SDLT, while £626,000 costs £18,800.
- Use a Lifetime ISA: Get a 25% government bonus (up to £1,000/year) on savings towards your first home. The property must cost £450,000 or less.
- Shared ownership: You can claim FTB relief on the share you’re purchasing, and may be able to defer SDLT on the remaining share.
- Help to Buy equity loan: While the scheme has closed to new applicants, those already enrolled benefit from reduced mortgage requirements.
- First Homes scheme: Properties sold at 30–50% below market value for local first-time buyers in certain areas.
- Negotiate extras: Instead of a higher price, ask the seller to include fixtures, fittings or appliances that you’d otherwise need to buy.
- Use a mortgage broker: A good broker can find deals not available directly and may save you thousands over the mortgage term, which more than offsets their fee (£300–£500).