Stamp duty: a first-time buyers guide
Working out the stamp duty involved with buying your first home can be a headache. And what exactly is stamp duty? Do first-time buyers have to pay it?
Find out what you need to know in our stamp duty guide for first-time buyers.
Working out the stamp duty involved with buying your first home can be a headache. And what exactly is stamp duty? Do first-time buyers have to pay it?
Find out what you need to know in our stamp duty guide for first-time buyers.
First-time buyers and stamp duty
Buying your first home is exciting, but it can also be overwhelming – especially when you consider all the costs involved. One of these is Stamp Duty Land Tax (SDLT).
But the good news is that you get a discount on SDLT if you’re buying your first home in England or Northern Ireland. This means you might pay no stamp duty at all.
What is stamp duty?
Stamp duty is a government land tax that you need to pay when you buy a property over a certain amount in England and Northern Ireland – this is known as the SDLT threshold.
The rules are different in Scotland and Wales, which have their own versions of stamp duty.
- In Scotland, it’s Land and Buildings Transaction Tax (LBTT)
- In Wales, it’s Land Transaction Tax (LTT).
Stamp duty is calculated as a percentage of the property purchase price, not as a percentage of your mortgage.
Do first-time buyers pay stamp duty?
First-time buyers get a discount – or relief – on stamp duty when buying their first home.
How much you pay – or whether you even pay stamp duty – depends on the purchase price of the property you’re buying.
How much is first-time buyers’ stamp duty?
Up to 31 March 2025, stamp duty rates for first-time buyers are:
|
Property price |
Stamp duty rate |
|
Up to £425,000 |
Zero |
|
£425,001 - £625,000 |
5% |
From 1 April 2025, the zero-SDLT threshold for first-time buyers will drop from £425,000 to £300,000. And the upper limit to be eligible for the discount will drop to £500,000.
|
Property price |
Stamp duty rate |
|
Up to £300,000 |
Zero |
|
£300,001-£500,000 |
5% |
So, at the moment, if you’re buying your first home for £500,000, the stamp duty would be:
- 0% on the first £425,000
- 5% on the remaining £75,000 = £3,750
- Total SDLT due = £3,750
But if you buy your first property for £500,000 from 1 April 2025, the stamp duty will be:
- 0% on the first £300,000
- 5% on the remaining £200,000 = £10,000
- Total SDLT due = £10,000
If the first home costs more than the upper limit of SDLT, you’ll be charged the same rates as existing homeowners who are buying their next property. See more on stamp duty rates.
Use the HMRC stamp duty calculator to work out how much SDLT you may need to pay. Don’t forget to factor in stamp duty costs when working out how much you can afford to pay for your first home.
Who’s considered a first-time buyer?
A first-time buyer is someone who is buying a house or flat as their main residence and has never owned a property before in the UK or abroad.
If you’re buying a property with someone else, like your spouse or partner, you both have to qualify as first-time buyers to get the stamp duty discount.
If only one of you is a first-time buyer, you may still qualify for the stamp duty discount. But only the first-time buyer can be named on the mortgage application and only their income will be taken into account. This means you might not be able to borrow as much or you may have to pay a higher interest rate on your mortgage.
Frequently asked questions
How do I pay stamp duty?
Usually your solicitor or conveyancer will pay any stamp duty owed, then add the amount to their fees. If you’re not using a solicitor, you can file the return and take care of payment yourself.
You must pay any stamp duty owed within 14 days of completing the purchase of your new home. Even if you’re under the SDLT threshold and don’t have to pay anything, an SDLT return still needs to be completed and sent to HMRC (HM Revenue & Customs) within this time.
Make sure you do this within 14 days of completion, or you could be charged a penalty of up to £200 as well as interest on the amount you owe.
Are there any stamp duty exemptions?
Even if the property is worth more than the 0% threshold limit, there are a few occasions when you won’t have to pay any stamp duty or even file a return. For example, if:
- The property is left to you in a will
- You don’t actually exchange payment for the property
- The property is transferred to you as part of a divorce settlement.
Do we pay stamp duty together as a couple?
When it comes to paying stamp duty, the person who owns the house is responsible. If the house is joint owned by you and your spouse or civil partner, you count as a single person for stamp duty and will only be charged one SDLT fee.
Do I have to pay stamp duty if I buy a home through the Shared Ownership Scheme?
If you buy your first home through the government’s Shared Ownership Scheme and it’s valued above the SDLT threshold, you might not need to pay stamp duty until your share of your home reaches 80%.
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