First-Time Buyer Stamp Duty in England: What You Pay
A first-time buyer in England pays no stamp duty on the first £300,000 of the price and 5% on the part between £300,001 and £500,000. So a £400,000 home costs £5,000 in stamp duty and a £500,000 home costs £10,000. If the price is over £500,000, first-time buyer relief does not apply at all and you pay standard rates on the whole price. These thresholds have applied since 1 April 2025.
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This is general information, not tax or legal advice. Stamp duty rules change; check GOV.UK or the HMRC stamp duty calculator before you exchange.
The first-time buyer rates
| Part of the price | Rate | |---|---| | Up to £300,000 | 0% | | £300,001 to £500,000 | 5% | | Price over £500,000 | No relief: standard rates on the whole price |
Standard rates, for comparison: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above.
Who counts as a first-time buyer
- You, and everyone you are buying with, have never owned a residential property anywhere in the world, including by inheritance.
- You intend to live in the property as your main home.
- The price is £500,000 or less.
If one buyer has owned before, the relief is lost for both. This is the most common surprise for couples.
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Worked examples (example prices)
£280,000: all within the 0% band. Stamp duty: £0.
£350,000: 5% on £50,000 (350,000 minus 300,000). Stamp duty: £2,500.
£450,000: 5% on £150,000. Stamp duty: £7,500.
£500,000: 5% on £200,000. Stamp duty: £10,000.
£510,000: over the limit, so standard rates on the whole price:
- 0% on the first £125,000 = £0
- 2% on £125,000 = £2,500
- 5% on £260,000 (510,000 minus 250,000) = £13,000
- Total: £15,500
Going £10,000 over the limit costs £5,500 more in tax than buying at £500,000. If you are near the line, negotiate below it where the property is genuinely worth it.
Other rules that can change your bill
- Non-UK residents usually pay a 2% surcharge on top, even as first-time buyers.
- Shared ownership has its own rules; check the GOV.UK shared ownership guidance.
- Scotland and Wales use different taxes (LBTT and LTT) with different first-time buyer rules. This article covers England. Northern Ireland uses SDLT too.
- Buying with someone who already owns a home can bring in the 5% higher rates for additional properties.
Deadlines
Your conveyancer files the SDLT return and pays the tax, usually within 14 days of completion. Late filing brings penalties and interest. Check your solicitor has included the tax in your completion statement.
Common mistakes
- Assuming relief applies on a £520,000 home "up to £500,000". It does not; the whole price is taxed at standard rates.
- Forgetting that a partner's past ownership, even abroad, cancels the relief.
- Not budgeting the tax as cash. Stamp duty is usually paid from savings, not added to the mortgage.
- Planning to rent the home out instead of living in it.
The full UK buying process, plus cost tables for the US, India and Dubai, is in Real Estate: Everything You Need to Know.
FAQ
Do I pay stamp duty on a £300,000 home as a first-time buyer?
No. At £300,000 or less a first-time buyer in England pays £0.
What if I inherited a share of a house years ago?
That usually counts as having owned a residential property, so you would not qualify. Check the GOV.UK guidance for your exact case.
Can I claim the relief later if I forgot?
You may be able to amend your return within the time limit. Speak to your conveyancer quickly.
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