Stamp duty for first-time buyers: what you pay in 2026.
In England and Northern Ireland, first-time buyers pay nothing on the first £300,000 of a home costing up to £500,000. Here are the bands, the rules for who qualifies, and how Scotland and Wales differ.
England and Northern Ireland: first-time buyer rates
| Part of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | No relief at all: standard rates apply to the whole price |
Examples: £250,000 home, £0. £350,000 home, £2,500. £500,000 home, £10,000. £510,000 home, £15,500 (standard rates). The cliff edge at £500,000 is real; if you are near it, it can be worth negotiating under.
Standard rates (for comparison)
0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above. So on a £300,000 home a first-time buyer saves £5,000.
Who counts as a first-time buyer
- You have never owned a home, or a share of one, anywhere in the world, including inherited property.
- If buying jointly, everyone must qualify.
- You intend to live in it as your main home.
- Shared ownership: you can claim relief on the full market value or pay in stages; your solicitor will advise.
Scotland: LBTT
Land and Buildings Transaction Tax. First-time buyer relief raises the nil-rate threshold to £175,000. Above that, normal LBTT bands apply.
Wales: LTT
Land Transaction Tax. No first-time buyer relief, but the nil-rate threshold is £225,000 for everyone.
When and how it is paid
Your solicitor files the return and pays it within 14 days of completion, from the money you sent them. You do not need to do anything, but check the figure on your completion statement matches the calculator.
A note on the numbers. Thresholds, schemes and typical costs are correct as far as we know at the time of writing and are for England and Northern Ireland unless we say otherwise. Rules change and lenders differ. Check the current position, and get advice from a qualified broker before you commit.
Quick answers
My partner owned a flat years ago. Do we lose the relief?
Yes, for the whole purchase. Everyone buying must be a first-time buyer. Some couples buy in one name with the other's income counted (joint borrower sole proprietor); take advice, and be honest with your solicitor.
Do I pay stamp duty on a new build incentive?
Stamp duty is on the price you pay. If the developer pays your stamp duty as an incentive, that is them paying it, not it disappearing; the lender may treat the incentive as a discount when valuing.
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