Stamp Duty Land Tax (SDLT) is one of the largest costs of buying a home in England. For first-time buyers, there's significant relief available — but it's not unlimited, and the rules changed in April 2025. Here's exactly what you'll pay in 2026.
First-Time Buyer SDLT Rates 2026
| Property Price | Standard Rate | First-Time Buyer Rate | Saving |
|---|---|---|---|
| Up to £300,000 | Varies | 0% | Full relief |
| £300,001–£425,000 | 5% | 5% | £0 above £300k |
| £425,001–£625,000 | 5% | 5% | First £300k still 0% |
| Above £625,000 | Standard rates | No first-time buyer relief | £0 |
Real Examples
- £250,000 property: SDLT = £0 (under the £300,000 threshold)
- £400,000 property: SDLT = 5% × (£400,000 − £300,000) = £5,000
- £600,000 property: SDLT = 5% × (£600,000 − £300,000) = £15,000
- £650,000 property: No first-time buyer relief. Standard residential rates apply: 0% on first £125k, 2% on £125k–£250k, 5% on £250k–£925k = approx £20,000
What Counts as a "First-Time Buyer"?
Everyone named on the mortgage/title deed must be a genuine first-time buyer — someone who has never owned a residential property anywhere in the world. If one buyer on a joint purchase previously owned a property, no first-time buyer relief applies to anyone on the transaction.
Frequently Asked Questions
What if the property is shared ownership?
First-time buyer relief applies to shared ownership purchases where the total market value of the property (not just your share) is below £625,000. You can elect to pay SDLT on the full market value or just your share — which option is best depends on your specific purchase price and circumstances.
When do I pay stamp duty?
SDLT must be paid within 14 days of completion. Your solicitor usually handles this as part of the conveyancing process and will include it in your completion funds. Do not confuse the tax with legal fees — they are separate.
Calculate your exact stamp duty with our Stamp Duty Calculator.