Last reviewed: April 2025 · 8 min read ·
First time buyer stamp duty in the UK changed significantly on 1 April 2025. Nearly half of all first-time buyers now pay a tax they didn’t pay before. Here’s exactly how much you owe — and how to avoid paying more than you need to…
As a first-time buyer in England, you pay zero Stamp Duty on any property up to £300,000. Above that, you pay 5% only on the portion between £300,001 and £500,000. If the property costs more than £500,000, first-time buyer relief does not apply and standard rates are used.
| Property Price | Stamp Duty for First-Time Buyers (From April 2025) | Explanation |
|---|---|---|
| £250,000 | £0 | No Stamp Duty payable |
| £350,000 | £2,500 | 5% on £50,000 above £300,000 |
| £450,000 | £7,500 | 5% on £150,000 above £300,000 |
| £500,000 | £10,000 | 5% on £200,000 above £300,000 |
| Over £500,000 | Standard Rates Apply | No first-time buyer relief available |
⚠️ Important — April 2025 changes affected first-time buyers most Before 1 April 2025, first-time buyers paid zero Stamp Duty on homes up to £425,000. That threshold dropped to £300,000 on 1 April 2025 — meaning a first-time buyer purchasing a £425,000 home now pays £6,250 more than they would have before April.
First Time Buyer Stamp Duty | How Much Will You Pay in 2026?
Questions answered in this article:
- What is Stamp Duty Land Tax and do first-time buyers have to pay it?
- How much first time buyer stamp duty will I pay in 2025? — exact figures
- What changed in April 2025 and why did it happen?
- How is Stamp Duty calculated? — real worked examples
- What happens if my property costs more than £500,000?
- When do you pay Stamp Duty and who handles it?
- Does first time buyer stamp duty apply to the First Homes Scheme?
- Does Stamp Duty apply in Scotland and Wales?
- Can I claim first time buyer stamp duty relief with a Joint Borrower Sole Proprietor mortgage?
1. What is Stamp Duty Land Tax and do first-time buyers have to pay it?
Stamp Duty Land Tax (SDLT) is a government tax paid by the buyer when purchasing a residential property in England or Northern Ireland.
You pay it as a single lump sum on completion day — not when you apply for a mortgage, not at exchange of contracts. Just once, at the very end of the purchase process.
As a first-time buyer, you receive a discount called First-Time Buyer Relief. This means you pay zero Stamp Duty on the first £300,000 of your purchase price.
However, that £300,000 threshold dropped in April 2025 — and it is hitting buyers hard.
Source: GOV.UK — Stamp Duty Land Tax: residential property rates https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
How much first time buyer stamp duty will I pay in 2025? — exact figures
Here are the exact amounts based on your property price as a first-time buyer from 1 April 2025:
| Property price | Stamp Duty payable |
|---|---|
| £200,000 | £0 |
| £250,000 | £0 |
| £300,000 | £0 |
| £350,000 | £2,500 |
| £400,000 | £5,000 |
| £425,000 | £6,250 |
| £450,000 | £7,500 |
| £500,000 | £10,000 |
| Above £500,000 | No relief — standard rates apply |
The simple rule: if your property is at or below £300,000, you pay nothing. Above that, you pay 5% only on the portion above £300,000 — up to a maximum property price of £500,000.
Source: GOV.UK — SDLT residential property rates · NatWest — Stamp Duty changes April 2025 https://www.gov.uk/stamp-duty-land-tax/residential-property-rates https://www.natwest.com/mortgages/mortgage-guides/stamp-duty-introduction/stamp-duty-changes.html
You pay it as a single lump sum on completion day — not when you apply for a mortgage, not at exchange of contracts. Just once, at the very end of the purchase process.
As a first-time buyer, you receive a discount called First-Time Buyer Relief. This means you pay zero Stamp Duty on the first £300,000 of your purchase price.
However, that £300,000 threshold dropped in April 2025 — and it is hitting buyers hard.
Source: GOV.UK — Stamp Duty Land Tax: residential property rates https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Q3: What changed in April 2025 and why did it happen?
Before 1 April 2025, first-time buyers paid zero Stamp Duty on homes up to £425,000. That threshold dropped to £300,000 on 1 April 2025.
This was not a new tax. It was a temporary relief introduced by the government in September 2022 that always had an expiry date built in. That expiry date arrived.
Here is exactly what changed:
| Threshold | Before 1 April 2025 | From 1 April 2025 | Difference |
|---|---|---|---|
| Zero-rate nil-rate band | £425,000 | £300,000 | Dropped £125,000 |
| Maximum price for relief | £625,000 | £500,000 | Dropped £125,000 |
| Rate on amount above nil-rate | 5% | 5% | Unchanged |
The impact has been significant. The share of first-time buyers paying Stamp Duty has jumped from 21% to 42% — nearly doubling overnight.
⚠️ Important: The UK government has not announced any further planned changes to Stamp Duty thresholds for England and Northern Ireland beyond April 2025.
Source: My Home Move Conveyancing — Stamp Duty changes 2025
Q4: How is Stamp Duty calculated? — real worked examples
Stamp Duty works exactly like income tax bands. You only pay the higher rate on the portion of the price that falls within each band — not on the full purchase price.
Worked example 1 — Property at £380,000:
| Band | Rate | Amount in this band | Tax paid |
|---|---|---|---|
| £0 to £300,000 | 0% | £300,000 | £0 |
| £300,001 to £380,000 | 5% | £80,000 | £4,000 |
| Total Stamp Duty | £4,000 |
Worked example 2 — Property at £450,000:
| Band | Rate | Amount in this band | Tax paid |
|---|---|---|---|
| £0 to £300,000 | 0% | £300,000 | £0 |
| £300,001 to £450,000 | 5% | £150,000 | £7,500 |
| Total Stamp Duty | £7,500 |
Worked example 3 — Property at £500,000:
| Band | Rate | Amount in this band | Tax paid |
|---|---|---|---|
| £0 to £300,000 | 0% | £300,000 | £0 |
| £300,001 to £500,000 | 5% | £200,000 | £10,000 |
| Total Stamp Duty | £10,000 |
✅ Tip: Use the official HMRC Stamp Duty calculator to get your exact personal figure:
Q5: What happens if my property costs more than £500,000?
First-time buyer relief disappears entirely above £500,000.
You pay standard SDLT rates from the first pound — exactly the same as someone who already owns a home. There is no partial relief. The relief is either fully applied or not applied at all.
Here are the standard rates that apply above £500,000:
| Property price band | Standard rate |
|---|---|
| £0 to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Worked example — Property at £550,000 with no first-time buyer relief:
- £0 to £125,000 at 0% = £0
- £125,001 to £250,000 at 2% = £2,500
- £250,001 to £550,000 at 5% = £15,000
- Total Stamp Duty: £17,500
That is £17,500 on a £550,000 property — compared to £10,000 on a £500,000 property with relief. Staying within the £500,000 cap matters enormously.
Source: GOV.UK — SDLT residential property rates
Q6: When do you pay Stamp Duty and who handles it?
You must pay Stamp Duty within 14 days of completion — the day you legally take ownership of the property.
Your conveyancing solicitor handles the entire process. They collect the funds from you before completion, submit the SDLT return to HMRC, and make the payment on your behalf. You will never need to contact HMRC directly yourself.
Miss the 14-day deadline and HMRC charges automatic penalties plus interest. This is one of the main reasons using a qualified conveyancing solicitor is not optional — it is essential.
✅ Good news: If your purchase falls through after exchange of contracts, you do not owe any Stamp Duty. SDLT only becomes due at completion. Your legal fees may still apply, but no Stamp Duty will be charged.
Source: Money Meister — Stamp Duty UK Guide 2025–26
Q7: Does Stamp Duty apply to the First Homes Scheme?
Yes — but on the discounted purchase price, not the full market value.
Because First Homes buyers purchase at a 30–50% discount off market value, their Stamp Duty is calculated on the lower figure they actually pay. This means most First Homes buyers end up paying zero Stamp Duty at all.
Here are the worked examples:
| Full market value | Discount | Your purchase price | Stamp Duty |
|---|---|---|---|
| £350,000 | 30% | £245,000 | £0 |
| £400,000 | 30% | £280,000 | £0 |
| £450,000 | 30% | £315,000 | £750 |
| £500,000 | 40% | £300,000 | £0 |
| £600,000 | 50% | £300,000 | £0 |
The combination of the First Homes discount and first-time buyer Stamp Duty relief working together is one of the most powerful financial advantages available to eligible buyers in England right now.
→ Related guide: Who qualifies for the First Homes Scheme? — full eligibility checklist 2025
Source: GOV.UK — First Homes Scheme · GOV.UK — SDLT rates
Q8: Does Stamp Duty apply in Scotland and Wales?
No. Scotland and Wales have entirely separate property transaction taxes.
| Country | Tax name | First-time buyer nil-rate threshold | Administered by |
|---|---|---|---|
| England & N. Ireland | SDLT | £300,000 | HMRC |
| Scotland | LBTT | £175,000 | Revenue Scotland |
| Wales | LTT | £225,000 (no separate FTB relief) | Welsh Revenue Authority |
If you are buying in Scotland or Wales, the rates, thresholds, and relief rules are entirely different and do not mirror the April 2025 SDLT changes.
Source: Money Meister — Stamp Duty UK Guide 2025–26
Q9: Can I claim first-time buyer relief with a Joint Borrower Sole Proprietor mortgage?
Yes — if a parent is added to your mortgage only and not to the title deeds, their property ownership does not affect your Stamp Duty relief.
Stamp Duty is assessed based on who is named on the title deeds — not on the mortgage. So if your parents help boost your affordability through a Joint Borrower Sole Proprietor arrangement but are not on the deeds, you remain fully eligible for first-time buyer relief.
This must be agreed with your lender and conveyancing solicitor before you reserve the property.
Source: The Mortgage Dog — SDLT calculator & JBSP guidance
Stamp Duty checklist — run through this before completion:
- ☑ I know my exact purchase price and have used the HMRC calculator to confirm my SDLT
- ☑ My property costs £500,000 or less — first-time buyer relief applies
- ☑ Neither myself nor my co-buyer has previously owned a property
- ☑ I have budgeted for Stamp Duty as a separate upfront cost on top of my deposit
- ☑ My conveyancing solicitor knows I am a first-time buyer and will claim the relief
- ☑ I understand that payment must reach HMRC within 14 days of completion
- ☑ If buying through the First Homes Scheme, I know Stamp Duty is based on the discounted price
Frequently asked questions
Do I pay Stamp Duty if my property costs less than £300,000?
No. As a first-time buyer in England, you pay zero Stamp Duty on any property priced at or below £300,000. This is the nil-rate threshold from 1 April 2025.
Is Stamp Duty paid on top of my deposit?
Yes. Stamp Duty is completely separate from your deposit and must be available as cash on completion day. Many first-time buyers are caught off guard by this cost — always budget for it separately from your deposit savings. Source: Money Meister
Will Stamp Duty thresholds change again in 2026?
As of April 2025, no further Stamp Duty changes have been announced for England and Northern Ireland. Always check GOV.UK before completing a purchase for the latest rates.
Does Stamp Duty apply to shared ownership purchases?
Yes — but first-time buyers on shared ownership schemes can choose to pay SDLT on the initial share only, rather than the full market value. First-time buyer relief can apply on the initial purchase where eligible.
Sources & References
All rates, thresholds, and worked examples are verified against official government and established financial consumer sources. All links confirmed April 2025.
[1] GOV.UK — Stamp Duty Land Tax: residential property rates Publisher: HM Government / HMRC · Last updated: October 2024 https://www.gov.uk/stamp-duty-land-tax/residential-property-rates Used for: all current SDLT rate bands · first-time buyer relief thresholds · standard rates · April 2025 worked example
[2] HMRC — Official Stamp Duty Land Tax Calculator Publisher: HM Revenue & Customs · Live tool https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro Used for: verifying all worked examples — readers should use this tool for their personal figure
[3] My Home Move Conveyancing — Stamp Duty changes 2025 & 2026 Publisher: My Home Move Conveyancing · Last updated: February 2026 https://myhomemoveconveyancing.co.uk/buyers/what-can-you-afford/stamp-duty-changes-2025/ Used for: nil-rate threshold reverting from £425,000 to £300,000 · maximum relief price from £625,000 to £500,000 · share of FTBs paying SDLT rising from 21% to 42%
[4] NatWest — Stamp Duty threshold changes April 2025 Publisher: NatWest Bank · Last updated: March 2026 https://www.natwest.com/mortgages/mortgage-guides/stamp-duty-introduction/stamp-duty-changes.html Used for: £5,000 extra cost on £400,000 property · no further changes announced for 2026
[5] Money Meister — Stamp Duty UK Guide 2025–26 Publisher: Money Meister · Updated April 2025 https://www.moneymeister.co.uk/guides/stamp-duty-guide-uk Used for: Scotland LBTT / Wales LTT tax names and thresholds · 14-day payment rule · SDLT not due at exchange · standard rate bands
[6] Hannays Solicitors — Stamp Duty changes from 1 April 2025 Publisher: Hannays Solicitors & Advocates · Published February 2025 https://www.hannayslaw.co.uk/stamp-duty-changes-from-1st-april-2025/ Used for: £6,250 additional cost on £425,000 property · temporary measure from September 2022 confirmed
[7] NRLA — Stamp duty changes: everything you need to know Publisher: National Residential Landlords Association https://www.nrla.org.uk/news/stamp-duty-changes-everything-you-need-to-know Used for: first-time buyer threshold drop from £425,000 to £300,000 · 5% rate confirmed on £300,001 to £500,000 portion
[8] StampDutyCalculator.org.uk — April 2025 rates Publisher: StampDutyCalculator.org.uk · Updated April 2025 https://www.stampdutycalculator.org.uk Used for: 14-day return rule · £0 on £250,000 FTB purchase · £10,000 on £500,000 FTB purchase
[9] Woodward Estate Agents — How much is Stamp Duty in 2025 Publisher: Woodward Estate Agents · Last updated: September 2025 https://www.woodward.co.uk/news/how-much-is-stamp-duty-in-2025-complete-guide-for-uk-buyers/ Used for: share of FTBs paying SDLT rising from 21% to 42% · regional impact analysis
[10] The Mortgage Dog — JBSP mortgage & first-time buyer relief Publisher: The Mortgage Dog · Verified April 2025 https://themortgagedog.com/stampdutycalculator Used for: Joint Borrower Sole Proprietor SDLT eligibility — parent on mortgage not title deeds does not affect FTB relief
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