Moving house guide

First-Time Buyer Stamp Duty Guide

Understand how first-time buyer Stamp Duty relief works in England, when relief applies, and what other buying costs to plan for.

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How first-time buyer Stamp Duty works

In England, Stamp Duty Land Tax is calculated in bands. First-time buyer relief reduces the SDLT bill if you are buying your first home and the purchase price is within the relief limit.

Under the current rules, first-time buyers pay no SDLT on the first £300,000 of the purchase price, then 5% on the portion from £300,001 to £500,000. If the purchase price is above £500,000, first-time buyer relief is not available and the standard residential SDLT rates apply.

This matters because two properties that look close in price can have very different upfront tax costs once a buyer crosses the relief limit. It is worth checking the Stamp Duty figure before deciding how much cash you need for deposit, legal fees, surveys, moving costs, and contingency.

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Current first-time buyer SDLT bands

Purchase price portionRate

Up to £300,0000%

£300,001 to £500,0005%

Above £500,000Relief unavailable

Example first-time buyer purchases

Buying at £300,000

A first-time buyer pays no SDLT because the full price sits inside the 0% first time buyer relief band.

Buying at £425,000

The first £300,000 is charged at 0%, then £125,000 is charged at 5%, giving an estimated SDLT bill of £6,250.

Buying above £500,000

First-time buyer relief is not available above the £500,000 limit, so the whole calculation follows the standard residential SDLT bands.

Who counts as a first-time buyer?

For first-time buyer relief, the key point is that everyone buying the property must be eligible as a first-time buyer. If one buyer has owned a residential property before, the purchase may not qualify for the relief.

The property also needs to be intended as your main residence. If you are buying an additional property, buy-to-let, company-owned property, or another non-standard arrangement, you should check the official rules or ask your solicitor.

Stamp Duty is only one buying cost

First-time buyers often focus on deposit and Stamp Duty first, but the cash needed to complete can also include conveyancing, searches, survey costs, mortgage fees, bank transfer fees, Land Registry fees, removals, insurance, and basic setup costs.

If you want to see those costs together, use the Moving House Cost Calculator after checking your SDLT figure.

First-time buyer Stamp Duty questions

Do first-time buyers pay Stamp Duty?

Many first-time buyers pay no SDLT if the purchase price is £300,000 or less. If the price is between £300,001 and £500,000, SDLT is charged at 5% on the portion above £300,000.

What happens above £500,000?

First-time buyer relief is not available if the purchase price is above £500,000. The purchase is then calculated using the standard residential SDLT bands.

Can one buyer be a first-time buyer?

If you are buying jointly, every buyer normally needs to qualify as a first-time buyer. If one buyer has owned a residential property before, relief may not apply.

Should I use the calculator result as final?

Use it as a planning estimate. Your solicitor should confirm the final SDLT position before completion, especially if the purchase is unusual.

Sources and review note

This guide was last reviewed on 24 May 2026. It is for planning only and does not replace advice from a solicitor, broker, lender, or tax adviser.

Check official GOV.UK Stamp Duty Land Tax residential rates before relying on a Stamp Duty figure.

Ready to use your own figures?

Estimate first-time buyer Stamp Duty

The guide explains the rules. The calculator lets you enter your purchase price, compare buyer statuses, and see the estimated SDLT bill.

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Moving house guides

Want the detail behind the calculator?

Use the calculator for the numbers, or open one of these guides for the extra context, assumptions, and planning checks behind each part of a move.