Stamp Duty is one of the biggest upfront costs of buying a home. First-time buyers get significant relief — but the rules changed in April 2025 and many buyers are caught out by the details. Here's everything you need to know.
Last updated: April 2026 · Written by the EasyCalculators team
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property in England or Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — different names, similar principles.
SDLT is a tiered tax — like income tax, you only pay each rate on the portion of the price that falls within that band. So buying a £250,000 home doesn't mean you pay the £250,000 rate on the whole amount.
In April 2025, the temporary stamp duty cuts introduced in September 2022 expired. The thresholds reverted to their pre-2022 levels:
| Property price | Rate (standard) | Rate (first-time buyer) |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 – £300,000 | 2% | 0% (FTB relief) |
| £300,001 – £500,000 | 5% | 5% |
| £500,001 – £925,000 | 5% | 5% (FTB relief lost) |
| £925,001 – £1.5m | 10% | 10% |
| Over £1.5m | 12% | 12% |
First-time buyers purchasing a property worth up to £500,000 pay no SDLT on the first £300,000 of the purchase price (instead of the first £125,000). This saves a maximum of £3,500 compared to a standard buyer.
If the purchase price is over £500,000, first-time buyer relief is withdrawn entirely and you pay the standard rates on the whole amount.
| First £125,000 | 0% × £125,000 = £0 |
| Next £125,000 (£125k–£250k) | 0% × £125,000 = £0 (FTB relief) |
| Total SDLT | £0 |
A standard buyer at £250,000 would pay £2,500. First-time buyer relief saves you £2,500 here.
| First £300,000 | 0% × £300,000 = £0 (FTB relief) |
| Next £100,000 (£300k–£400k) | 5% × £100,000 = £5,000 |
| Total SDLT | £5,000 |
A standard buyer at £400,000 would pay £10,000. First-time buyer relief saves you £5,000 here — the maximum saving.
The property costs more than £500,000, so first-time buyer relief does not apply. You pay standard rates on the whole amount:
| First £125,000 | 0% = £0 |
| £125,001 – £250,000 | 2% × £125,000 = £2,500 |
| £250,001 – £550,000 | 5% × £300,000 = £15,000 |
| Total SDLT | £17,500 |
HMRC's definition is strict. You qualify only if:
You do not qualify if you've previously inherited a property (even a small share), owned a property overseas, or if your parents have put your name on a deed at any point.
If you're buying jointly, both buyers must be first-time buyers to claim the relief. If your partner previously owned a property — even years ago — you lose the first-time buyer relief entirely and pay the full standard rates.
This catches many couples off guard. One previous homeowner in a joint purchase eliminates the relief for the transaction.
SDLT must be paid and a return filed within 14 days of completion. This is normally handled by your solicitor or conveyancer, who will collect the SDLT from you as part of your completion funds. Missing the deadline results in automatic penalties and interest charges.