Conveyancing
Stamp Duty for First Time Buyers Explained
By Faizal Lunat · 14 August 2026 · 6 min read
First time buyers pay no Stamp Duty on the first £300,000, but the relief has conditions and a cut-off. Here is how it works and when it does not apply.
Stamp Duty Land Tax is the tax you pay to HMRC when you buy property in England or Northern Ireland. First time buyers get a relief that removes the tax altogether on most modest purchases, but it comes with conditions that catch people out, and it disappears completely above a certain price.
The first time buyer rates
If you qualify for first time buyer relief, you pay nothing on the first £300,000 of the purchase price and 5% on anything between £300,001 and £500,000. If the price is above £500,000 you get no relief at all and the standard rates apply to the whole purchase.
- Up to £300,000 — no Stamp Duty
- £300,001 to £500,000 — nothing on the first £300,000, then 5% on the balance
- Above £500,000 — relief is lost entirely and standard residential rates apply
The standard rates, for comparison
A buyer who is not a first time buyer, and who is replacing their main home, pays nothing on the first £125,000, then 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above that. Higher rates apply if you will own more than one property at the end of the day of completion.
Who counts as a first time buyer
You must never have owned a freehold or leasehold interest in a residential property, anywhere in the world. That includes property you inherited, property you owned jointly and property you owned but never lived in. It also means that if you are buying with someone else, every buyer must be a first time buyer. One person who has owned before removes the relief for the whole purchase.
You also have to intend to live in the property as your only or main residence. The relief is not available for a buy to let.
A worked example
On a £320,000 purchase, a qualifying first time buyer pays nothing on the first £300,000 and 5% on the remaining £20,000, giving £1,000. A buyer who does not qualify would pay £2,500 on the same property under the standard rates.
How it is paid
You do not pay HMRC yourself. We prepare and submit the Stamp Duty return on your behalf and pay the tax from the funds you send us before completion, within the statutory deadline. The figure appears clearly on the completion statement we send you in advance, and it is included in the estimate our online quote tool produces.
Check the current position
Stamp Duty thresholds change with government policy, so always confirm the rates that apply on your completion date. HMRC publishes the current rates and a calculator at gov.uk, and we will confirm your figure in writing as part of your purchase.
Frequently Asked Questions
- Do first time buyers pay Stamp Duty?
- Not on the first £300,000 of the purchase price. Between £300,001 and £500,000 you pay 5% on the amount above £300,000, and above £500,000 the relief is lost entirely.
- What if I am buying with someone who has owned a property before?
- The relief is lost for the whole purchase. Every buyer named on the purchase must be a first time buyer for the relief to apply.
- Does inheriting a property stop me being a first time buyer?
- Yes. Owning any residential interest anywhere in the world, including one you inherited and never lived in, disqualifies you.
- When is Stamp Duty paid?
- We submit the return and pay HMRC on your behalf shortly after completion, using funds you send to us beforehand. The amount is shown on your completion statement.
This article is general information, not legal advice. For advice on your own circumstances, speak to a Solicitor & Director on 07449 567711.
