Stamp Duty for First-Time Buyers in 2026: Thresholds, Relief and What Changed in April
UK first-time buyers got hit with a higher SDLT bill from 1 April 2025. Here's what the rules look like now, what they save you compared with a standard buyer, and the situations where the relief gets surprisingly complex.
This guide is general information, not tax or legal advice. SDLT rules have edge cases — confirm your specific position with a conveyancing solicitor or tax adviser. Your home may be repossessed if you do not keep up repayments on your mortgage.
The 2026 Stamp Duty rates for England and Northern Ireland
Stamp Duty Land Tax (SDLT) is paid by buyers in England and Northern Ireland on residential property purchases. The standard rates after 1 April 2025 are:
| Property price band | Standard SDLT rate |
|---|---|
| £0 to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5m | 10% |
| Over £1.5m | 12% |
First-time buyers in England and Northern Ireland get a special relief on top of these standard rates:
| Property price band | First-time buyer SDLT rate |
|---|---|
| £0 to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | No first-time buyer relief — standard rates apply |
The relief is binary above £500,000 — if your property costs even £1 over £500,000, you lose the relief entirely and pay standard rates on the whole purchase. This is the most common SDLT optimisation point for first-time buyers buying in expensive areas: negotiating from £505,000 down to £500,000 saves £10,000 in SDLT, not £250.
Worked examples
| Price | FTB SDLT | Standard SDLT | FTB saving |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £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 (no FTB relief) | £15,000 | £0 |
| £600,000 | £20,000 (no FTB relief) | £20,000 | £0 |
Run your specific number through the Stamp Duty calculator.
What changed in April 2025
Between 23 September 2022 and 31 March 2025, the first-time buyer relief threshold was temporarily raised to £425,000 with a £625,000 maximum eligible purchase price. From 1 April 2025 the thresholds reverted to £300,000 and £500,000 respectively. Reverting was always the plan — the temporary uplift was a 2022 mini-budget measure that was extended once.
The practical effect: first-time buyers buying a property around £350,000 to £425,000 now pay £2,500-£6,250 more SDLT than they would have done if they'd completed before April 2025. Rightmove estimated the policy change cost UK first-time buyers a collective £307 million in additional SDLT in the first quarter post-change alone.
Who counts as a first-time buyer (the strict definition)
HMRC's definition is strict. A first-time buyer is someone who has never:
- Bought a residential property anywhere in the UK or abroad.
- Inherited any beneficial interest in residential property.
- Been gifted residential property.
- Owned residential property through a trust.
- Held a leasehold interest of more than 21 years in residential property.
On a joint purchase, every buyer named on the title must independently meet this definition. If your partner owns a buy-to-let from a previous life, you both lose first-time buyer relief on your joint home purchase — even though only one of you has owned property before.
Special situations
Shared Ownership
You can elect to pay SDLT either on the share you're buying or on the market value of the whole property. The market-value election is usually cheaper if you plan to staircase to full ownership later — paying once now beats paying again on every share increase. First-time buyer relief applies in either case. Discuss with your conveyancer before completion; the election can't usually be changed afterwards. Detailed guide: Shared Ownership mortgages explained.
First Homes scheme
SDLT is calculated on the discounted price you pay, not the market value. So a £400,000 property bought at a 30% discount for £280,000 attracts SDLT on £280,000 — which is £0 for a first-time buyer under the £300,000 threshold. The First Homes discount preserves the SDLT advantage as well as the price advantage. First Homes scheme guide.
Joint Borrower Sole Proprietor (JBSP)
JBSP arrangements keep parents off the title even though they're on the mortgage. Because SDLT relief depends on title ownership, the parent's previous property ownership does not disqualify the child's first-time buyer status. This is one of the most important SDLT optimisations available for first-time buyers using parental income to qualify for a larger loan. JBSP guide.
The 3% second-home surcharge (avoiding it)
If you already own a residential property and you're buying another, an extra 3% SDLT surcharge applies. First-time buyers never trigger this. Edge cases: if you're buying a new main home while still owning your old one (chain hasn't completed), you pay the surcharge but can reclaim it within 36 months if you sell the old one.
Scotland (LBTT) and Wales (LTT)
Scotland — Land and Buildings Transaction Tax
| Band | Standard rate | FTB rate |
|---|---|---|
| Up to £145,000 (standard) / £175,000 (FTB) | 0% | 0% |
| £145,001-£250,000 | 2% | 2% (above £175k) |
| £250,001-£325,000 | 5% | 5% |
| £325,001-£750,000 | 10% | 10% |
| Over £750,000 | 12% | 12% |
Scottish first-time buyer relief saves a maximum of £600.
Wales — Land Transaction Tax
Wales does not have a specific first-time buyer relief. The standard nil-rate band runs to £225,000 for residential purchases, which already covers many first-time buyer transactions. Above that, rates rise to 6%, 7.5%, 10%, and 12% in higher bands.
How to pay
Your solicitor handles SDLT (or LBTT/LTT) on your behalf as part of the completion process. They submit the return and pay HMRC out of completion funds. You don't deal with HMRC directly. The form must be filed within 14 days of completion (30 days in Scotland under LBTT).
What to do next
Get the Stamp Duty figure for your specific purchase using the Stamp Duty calculator. Build it into your savings target along with your deposit, legal fees, and survey. Read the deposit guide to size the rest of your cash requirement, and get matched with a broker who'll structure your mortgage application around the property price band you're aiming for.
Frequently asked questions
How much Stamp Duty does a first-time buyer pay on a £400,000 home in England in 2026?
£5,000. The first-time buyer relief means 0% on the first £300,000 and 5% on the £100,000 between £300,000 and £400,000. That's £5,000 total. Without FTB relief the same purchase would attract £7,500 of SDLT.
Did Stamp Duty for first-time buyers change in 2025?
Yes. From 1 April 2025, the first-time buyer relief threshold reverted from £425,000 to £300,000, and the maximum eligible purchase price reverted from £625,000 to £500,000. The temporary relief that ran from September 2022 to March 2025 has now ended. Purchases completing on or after 1 April 2025 use the new (lower) thresholds.
Do both buyers need to be first-time buyers on a joint purchase?
Yes. For first-time buyer SDLT relief to apply, every buyer on the title must be a first-time buyer. If one buyer has ever owned residential property anywhere in the world, relief is lost on the whole purchase. Joint Borrower Sole Proprietor (JBSP) arrangements get around this by keeping the parent off the title.
Does Stamp Duty apply to Shared Ownership?
Yes, but you have a choice. You can either pay SDLT on the share you're buying now (the 'staged' route) or pay SDLT on the full market value of the property as if buying it outright (the 'market value' election). The market-value election is often cheaper long-term if you plan to staircase to 100%, but it means a bigger SDLT bill up front. First-time buyer relief applies in either case if you qualify.
Is Stamp Duty different in Scotland and Wales?
Yes. Scotland uses Land and Buildings Transaction Tax (LBTT), with first-time buyer relief raising the nil-rate band to £175,000. Wales uses Land Transaction Tax (LTT), with no specific first-time buyer relief — but the standard nil-rate band runs up to £225,000 for residential transactions, which already exceeds the £300,000 English/NI FTB threshold for cheaper properties. Northern Ireland uses the same Stamp Duty Land Tax as England.
When does Stamp Duty need to be paid?
Within 14 days of completion. Your conveyancing solicitor handles the submission and payment to HMRC out of completion funds — you do not need to pay HMRC directly. The form is the SDLT1 return; for Scotland and Wales the equivalent forms are LBTT and LTT returns respectively, also handled by your solicitor.
If I inherit a share in a property, am I still a first-time buyer?
No. HMRC's definition of a first-time buyer is anyone who has never had a major interest in residential property anywhere in the world, by purchase, inheritance, or gift. Inheriting any share — even a small one — disqualifies you from first-time buyer relief on a later purchase. Renouncing the inheritance does not reset eligibility once it has been received.
Related guides
Need help structuring the purchase?
Match with an FCA-authorised broker who can structure your mortgage around the SDLT thresholds for free.