Stamp Duty First Time Buyer 2026/27
First-time buyer relief, as it stands for 2026/27
First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax on the first £300,000 of a property’s purchase price. Between £300,001 and £500,000, you pay 5% only on the portion above £300,000. Properties priced above £500,000 don’t qualify for first-time buyer relief at all — standard rates apply to the whole purchase instead.
Who actually counts as a first-time buyer
- You must never have owned, or had an interest in, a residential property anywhere in the world — not just the UK — including through inheritance, a gift, or a previous joint purchase
- If you’re buying with someone else, every buyer named on the purchase must individually qualify as a first-time buyer, or the relief is lost entirely for the whole transaction
- The property must be intended as your only or main residence — buy-to-lets and second homes never qualify for first-time buyer relief, regardless of your personal ownership history
Working out your exact bill
Because relief only applies up to £500,000 and the rate structure changes at each threshold, the exact SDLT due varies more than people expect between similarly priced properties either side of a band. Running your specific purchase price through a stamp duty calculator gives an exact figure rather than an estimate.
How much first-time buyer relief saves you
The relief is simplest to understand by comparing what you would pay with and without it. The table uses the 2026/27 standard residential Stamp Duty Land Tax (SDLT) rates for England and Northern Ireland: 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 that. First-time buyer relief replaces those rates with 0% up to £300,000 and 5% from £300,001 to £500,000.
| Purchase price | First-time buyer pays | Standard rates would be | You save |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £500,001 | £15,000 | £15,000 | £0 |
| £600,000 | £20,000 | £20,000 | £0 |
The relief is worth a flat £5,000 on any purchase between £300,000 and £500,000, and nothing from £500,001 upwards. That cliff edge matters: a home at £500,000 costs £10,000 in SDLT, but at £500,001 the bill jumps to £15,000 because standard rates then apply to the whole price. If you are negotiating near £500,000, a few hundred pounds off the price can save £5,000 in tax.
Scotland and Wales work differently
SDLT only applies in England and Northern Ireland. In Scotland, the equivalent is Land and Buildings Transaction Tax (LBTT), where first-time buyers get a higher zero-rate band of £175,000 instead of the standard £145,000. In Wales, Land Transaction Tax (LTT) has no first-time buyer relief, but the standard zero-rate band is £225,000, so a first-time buyer in Wales pays no tax on a home up to that price. Which tax applies depends on where the property is, not where you live.
Situations that catch people out
Buying with a partner who has owned property before removes the relief for the whole purchase, not just their share, so couples sometimes consider whether one buyer should go on the purchase alone. This needs care, because it affects the mortgage and ownership rights, and it is worth taking legal advice before changing who is named on the purchase. Inheriting a share of a property, even one you have never lived in, also counts as having owned an interest and means you no longer qualify.
Shared ownership buyers can choose between paying SDLT on the share they buy or on the full market value of the home. First-time buyer relief can be claimed on the full market value choice if it is £500,000 or less, so it is worth asking your solicitor to compare both approaches. Buying a property that you will let out is never eligible, and if you already own another home at completion, even one you are selling, the higher rates for additional properties may apply instead.
Paying the tax and claiming the relief
Your solicitor or conveyancer normally files the SDLT return and pays HMRC on your behalf from completion funds, and the return is due within 14 days of completion. Make sure they know you are a first-time buyer before exchange so the relief is built into the figures you are quoted. If the relief is not claimed correctly, it can be reclaimed from HMRC, but it is far easier to get right at the time.
A Lifetime ISA can help fund the purchase: the 25% government bonus can be used towards a first home costing up to £450,000, and the money can be withdrawn without penalty for that purpose. See our Lifetime ISA calculator to estimate the bonus. Stamp duty is also only one of the upfront costs; legal fees, survey, mortgage fees and moving costs all add to the total, and it helps to budget for them before you make an offer.
Sources: GOV.UK: Stamp Duty Land Tax residential rates and GOV.UK: first-time buyer relief. This guide is information, not tax or legal advice.