First-time buyer stamp duty

Wondering how much stamp duty you'll pay as a first-time buyer? Understanding Stamp Duty Land Tax (SDLT) can be an important part of budgeting for your first home. Learn how first-time buyer stamp duty relief works, current thresholds and rates and how much you could pay when buying a property.

The headlines

  • Stamp Duty Land Tax (SDLT) may need to be paid when you buy a residential property in England and Northern Ireland.
  • First-time buyers could qualify for stamp duty relief on properties worth up to £500,000. 
  • You don’t pay stamp duty as a first-time buyer on properties worth up to £300,000 and then 5% from £300,000 to £500,000.
  • Similar taxes apply in Scotland and Wales but they’re not called stamp duty.

In this guide

What is stamp duty?

Do first-time buyers pay stamp duty?

Do first-time buyers in Scotland and Wales have to pay stamp duty?

How do first-time buyers pay stamp duty?

Frequently asked questions

What is stamp duty?

Stamp duty
Stamp duty

Stamp duty is a tax you may need to pay when buying a residential property or land. Buyers in England and Northern Ireland pay stamp duty Land Tax (SDLT) on properties they purchase.

It applies whether the property is freehold or leasehold and if it’s bought with a mortgage or outright.

The amount of stamp duty you pay depends on:

  • when you purchased the property
  • how much you bought it for
  • whether you’re eligible for relief or exemptions.

As a first-time buyer, you may be able to get stamp duty relief on your first home, but this depends on the price of your property and who you’re applying with.

Do first-time buyers pay stamp duty?

Yes, as a first-time buyer, you might need to pay stamp duty. But you may be able to get stamp duty relief if your home costs less than £500,000.

There are different stamp duty thresholds for first-time buyers than for those looking to move home. Let’s take a look at what these thresholds might look like for you.

First-time buyer stamp duty rates

The stamp duty rates for first-time buyers are:

  • 0% to pay up to £300,000
  • 5% from £300,001 to £500,000.

If your home costs more than £500,000, or you’re buying with someone who has already owned a home, you won’t qualify for first-time buyer relief. 

This means you’ll pay the same as people who have bought a house before. Find out more on our stamp duty page.

What might this look like for you?

For a first home costing £350,000, the current stamp duty costs would be:

  • nothing to pay on the first £300,000
  • 5% on the remaining £50,000 = £2,500
  • the total to pay would be £2,500.

If you’re not a first-time buyer, you’d pay £7,500 stamp duty. 

You can use the government stamp duty calculator to help you find out what you might owe.

Do first-time buyers in Scotland and Wales pay stamp duty?

Although not called stamp duty, there is a similar tax in Scotland and Wales.

With LBTT in Scotland, first-time buyers won’t pay tax on purchases up to £175,000. But different bands and rates apply depending on the property type.

For LTT in Wales, there’s a general threshold of £225,000 for most property purchases in Wales. But there’s no first-time buyer relief, so the same thresholds apply to everyone.

How do first-time buyers pay stamp duty?

The solicitor or conveyancer handling your purchase will usually handle paying stamp duty for you. But you’re ultimately responsible for making sure it’s done, so do check with them.

If you need to pay stamp duty yourself

You may still need to send a return, even if you're exempt from paying.

Can I add stamp duty to my mortgage?

You may be able to borrow enough to cover your tax payment. If you do, you’ll have a larger mortgage and pay more interest so it’s worth considering carefully.

Borrowing more may also impact your loan to value ratio, which can determine the rate you’re offered.

Mortgage calculator

Use our calculator to find out how much you could borrow for your first home and compare monthly repayments.

Mortgage calculator

Let's look at the details

  • First-time buyers don’t have to pay stamp duty up to £300,000 if the property costs less than £500,000. You also don’t have to pay any stamp duty if your home cost less than £125,000, was gifted, inherited in a will or was given as part of a separation or divorce.

    There are other reasons you might not need to pay stamp duty on the GOV.UK website.

  • Yes, everyone who will be buying the property must be first-time buyers to qualify for the relief.

  • Yes, you do have to pay some stamp duty if you’re not a UK resident and are buying your first home in England or Northern Ireland. You can still apply for first-time buyer stamp duty relief up to £300,000 on your first home. But you might have to pay a 2% surcharge on top of any standard rates that apply to you.

    This surcharge applies whether or not you plan on living in the property, and whether it’s your first or second home. In some cases, you may not have to pay the surcharge. You can also check if you’re eligible for a refund using the government tool.

    For tax purposes, you are classed as a ‘non-UK resident’ if you’ve not been in the country for at least 183 days, or 6 months, during the 12 months before you bought your home. This applies whether you’re a first-time buyer in the UK or not.

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