First-Time Buyer Stamp Duty Relief 2026
How much you save, eligibility rules, and what changed in April 2025.
First-time buyers in England and Northern Ireland pay no stamp duty on properties up to £300,000. On properties £300,001-£500,000, you pay 5% only on the amount above £300,000. Properties over £500,000 get no relief.
First-Time Buyer Calculator
Eligibility Checklist
How Much First-Time Buyers Save
England and Northern Ireland. Using 2026 rates.
| Property price | Standard buyer pays | First-time buyer pays | Saving |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £250,000 | £3,750 | £0 | £3,750 |
| £300,000 | £5,000 | £0 | £5,000 |
| £350,000 | £7,500 | £2,500 | £5,000 |
| £400,000 | £10,000 | £5,000 | £5,000 |
| £450,000 | £12,500 | £7,500 | £5,000 |
| £500,000 | £17,500 | £10,000 | £7,500 |
The maximum saving is £5,000 on properties at or above £300,000 up to £500,000, because the nil-rate band saves 0% vs standard 2%/5% rates up to £300,000. Note: at £500,000 the saving is £7,500 because the calculation avoids the standard rate on £300,001-£500,000 (saving £5,000 on this portion) and also on £0-£300,000.
What Changed in April 2025
| Threshold | Before April 2025 | From April 2025 | Impact |
|---|---|---|---|
| FTB nil-rate band | £425,000 | £300,000 | Higher taxes at £300k-£425k |
| Maximum property price for relief | £625,000 | £500,000 | No relief above £500k |
| FTB at £425,000 | £0 | £6,250 (+£6,250) | Now pay 5% on £300k-£425k |
| FTB at £500,000 | £3,750 | £10,000 (+£6,250) | 5% on £300k-£500k now |
Edge Cases and Common Questions
Do first-time buyers pay stamp duty in 2026?
First-time buyers in England and Northern Ireland pay no stamp duty on properties up to £300,000. On properties between £300,001 and £500,000, you pay 5% only on the amount above £300,000 (saving a maximum of £5,000 compared to standard rates). Properties over £500,000 attract no relief whatsoever.
For example, a first-time buyer at £350,000 pays 5% on £50,000 (the amount above £300,000) = £2,500. A standard buyer at the same price pays £7,500. Saving: £5,000.
What if my partner has owned property before?
If you are buying jointly with someone who has previously owned property, first-time buyer relief does not apply. All buyers named on the mortgage and purchase deed must be first-time buyers. There is no partial relief for one first-time buyer in a joint purchase.
This is a common situation for couples where one partner has sold a previous property. In this case, standard stamp duty rates apply to the full purchase price. It may be worth considering whether the first-time buyer could purchase alone (if affordable) to retain the relief.
I inherited a property. Can I still claim first-time buyer relief?
If you inherited a property and hold a beneficial interest in it (even a small share), HMRC may consider you to have previously owned property. However, if you inherited a share of less than 50% in a property and no longer hold that interest, you may still qualify for first-time buyer relief in some circumstances.
The rules here are nuanced and depend on the type of interest held, when it was inherited, and whether it was disposed of. Always consult a solicitor or tax adviser if you have inherited property before relying on first-time buyer relief.
Can I get first-time buyer relief on shared ownership?
Yes. First-time buyers purchasing through a shared ownership scheme can claim first-time buyer relief on both the initial shares purchase and any subsequent staircasing purchases. The relief applies to the market value of the property (not just your share) if you elect to pay SDLT on the full market value upfront.
If you pay SDLT on a lease-by-lease basis (just on your initial share), the relief applies to that transaction if the lease premium is £500,000 or less. Shared ownership schemes often have higher eventual total costs - use our calculator with the full market value to understand your long-term liability.
What is first-time buyer relief in Scotland?
Scotland has a first-time buyer relief under LBTT that extends the nil-rate band from £145,000 to £175,000. This provides a maximum saving of just £600, compared to up to £5,000 in England. The Scotland FTB relief applies to residential property purchases where all buyers are first-time buyers.
Wales does not currently offer a specific first-time buyer relief for LTT. However, Wales has a higher nil-rate band of £225,000 for all buyers, which partially compensates compared to England's £125,000 threshold.