Stamp Duty Land Tax (SDLT) is one of the biggest costs beyond the deposit when buying a home in England or Northern Ireland. But first-time buyers have access to significant relief that can save thousands of pounds. This guide explains exactly how much you pay, who qualifies, and how to calculate your bill before you make an offer.
First-Time Buyer SDLT Rates in England & Northern Ireland (2026)
First-time buyers benefit from a higher nil-rate threshold compared to standard buyers:
| Portion of Property Price | Standard Buyer Rate | First-Time Buyer Rate |
|---|---|---|
| Up to £250,000 | 0% | 0% |
| £250,001 – £425,000 | 5% | 0% |
| £425,001 – £625,000 | 5% | 5% |
| Over £625,000 | 10% / 12% | Standard rates — no relief |
Maximum saving: A first-time buyer purchasing at £425,000 pays £0 in SDLT. A standard buyer at the same price pays £8,750. That is a saving of £8,750 — roughly equivalent to 2–3 months of mortgage payments on many properties.
Examples of First-Time Buyer SDLT Bills
- £200,000 property: £0 (within nil-rate band for all buyers)
- £300,000 property: £0 first-time buyer vs £2,500 standard
- £425,000 property: £0 first-time buyer vs £8,750 standard
- £500,000 property: £3,750 first-time buyer (5% of £75,000 above £425k) vs £12,500 standard
- £625,001 property: No first-time buyer relief — standard rates apply in full
Who Qualifies as a First-Time Buyer?
To receive first-time buyer SDLT relief, all purchasers named on the purchase must be first-time buyers. A first-time buyer is someone who has never owned a residential property anywhere in the world — including:
- Properties inherited (even if never lived in)
- Properties owned abroad
- Previous homes in any country
- Properties you had a beneficial interest in (even without being on the title deeds)
Crucially, if you are buying jointly with a partner who has previously owned property, neither of you qualifies for first-time buyer relief on that purchase — even though you personally have never owned.
Does the Property Type Affect Eligibility?
First-time buyer relief applies only to properties you intend to use as your main residential home. It does not apply to:
- Buy-to-let purchases
- Holiday homes
- Properties with a purchase price above £625,000
- Commercial properties or mixed-use buildings
Shared Ownership and First-Time Buyer SDLT
If you are buying through a shared ownership scheme, you have two options for paying SDLT:
- Pay on the share you are buying (market value election) — SDLT is calculated on the value of your purchased share only. First-time buyer relief applies if the full market value of the property is £625,000 or less.
- Pay on the full market value upfront — Some buyers choose this to avoid paying SDLT again when they staircase (purchase additional shares).
When and How to Pay SDLT
SDLT must be paid to HMRC within 14 days of completing the property purchase. Your solicitor or conveyancer normally handles this for you — they collect the amount as part of completion funds and submit it to HMRC electronically on your behalf. Late payment incurs interest and penalties.
Scotland and Wales — Different Rules
- Scotland — Land and Buildings Transaction Tax (LBTT): First-time buyer relief increases the nil-rate band to £175,000. Rates above that start at 2% up to £250,000, then 5%, 10%, 12%.
- Wales — Land Transaction Tax (LTT): No specific first-time buyer relief. Nil-rate band is £225,000 for all buyers. Rates above are 6% (up to £400k), 7.5%, 10%, 12%.