Guide · tax year 2026/27
Stamp duty for first-time buyers
How first-time buyer relief works, who qualifies, and what happens above the price cap.
If you are buying your first home in England or Northern Ireland, you may pay less Stamp Duty Land Tax (SDLT) than other buyers, or none at all. This is first-time buyer relief. This guide explains how it works, who qualifies, and the sharp jump at the price cap, using 2026/27 rules.
How the relief works
First-time buyers pay no stamp duty on the first £300,000 of the price and 5% on the part from there up to £500,000 (GOV.UK: residential property rates). Other buyers start paying above £125,000, so the saving can be large.
On a home costing £400,000, a first-time buyer pays £5,000. Someone who is not a first-time buyer, and will own only this home, pays £10,000 on the same home.
Who counts as a first-time buyer
The rules are stricter than many people expect. To claim the relief (HMRC manual SDLTM29831):
- Everyone buying must qualify. If any buyer is not a first-time buyer, no relief is available. Buying with a partner who has owned a home means no relief.
- Never owned a home anywhere. You must never have owned a home, or a share of one, anywhere in the world. That includes a home you inherited or were given (SDLTM29845).
- It must be your main home. All of you must intend to live in it as your only or main residence. A buy-to-let does not qualify.
- Individuals only, one home. Companies cannot claim it, and the purchase must be a single home (Finance Act 2003, Schedule 6ZA).
The price cap and the cliff edge
The relief only applies if the price is £500,000 or less. Above that, there is no relief at all: standard rates apply to the whole price, not just the part over the cap. That makes a sudden jump in the tax.
For example, a first-time buyer pays £10,000 on a home costing £500,000, but £15,500 on one costing £510,000. A small difference in price makes a large difference in tax, which is worth knowing when you make an offer near the cap.
A worked example, band by band
On a £400,000 home bought by a first-time buyer:
- £300,000 at 0% = £0
- £100,000 at 5% = £5,000
That is £5,000 in total. The tax is rounded down to the nearest pound (HMRC manual SDLTM00050).
Paying stamp duty
You must send an SDLT return to HMRC and pay within 14 days of completion. If you use a solicitor or conveyancer, they will usually do this for you on the day of completion (GOV.UK: Stamp Duty Land Tax).
Scotland and Wales
Stamp duty applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with their own rules for first-time buyers. This guide does not cover them.
Buyers who are not UK residents
Buyers who are not resident in the UK usually pay a further 2% surcharge on top of the other rates (GOV.UK: rates for non-UK residents). Our calculator does not include it.
How much the relief saves
The saving depends on the price. Compare a first-time buyer with someone who is not a first-time buyer and will own only this home:
| Price | First-time buyer | Other buyer | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £550,000 | £17,500 | £17,500 | £0 |
Up to the price cap, the saving depends on the price, as the table shows. Above the cap, the saving disappears completely: at £550,000 a first-time buyer pays exactly the same as anyone else who will own only this home.
Every pound above the nil band
For a first-time buyer, the price up to £300,000 is tax-free, and each pound above it, up to the cap, adds 5p of stamp duty. So a home at £300,000 has no stamp duty, while one at £325,000 has £1,250. That is useful to know when comparing homes or negotiating: below the cap, a lower price saves a small, predictable amount of tax, while crossing the cap costs a large amount at once.
Buying with someone else
If you buy with a partner, a friend or a relative, the relief depends on all of you. Every buyer must be a first-time buyer and must intend to live in the home as their only or main residence. If one buyer does not qualify, nobody gets the relief, and the standard rates apply to the whole price. If any buyer will own another home, the higher rates may apply instead; see stamp duty on second homes and buy-to-let.
Common questions
My partner owned a flat years ago. Can we still claim?
Not if you are buying together. Every buyer must be a first-time buyer, and owning a home at any time, anywhere, counts.
Can I claim if I am buying a home to rent out?
No. You must intend to live in it as your only or main home.
Where can I work out my figure?
Use our stamp duty calculator, which shows the same price for every type of buyer. If you might own more than one home, read stamp duty on second homes and buy-to-let.
General information for the 2026/27 tax year, not financial or tax advice. We are not HMRC. Found a mistake? See our corrections policy.