Stamp duty for first-time buyers (England, 2026)
First-time buyers in England pay no SDLT up to £300,000 and 5% on the slice to £500,000. Above £500,000 the relief is withdrawn entirely — a cliff that punishes one extra pound of price by up to £5,000+ in tax.
£0
Effective rate: 0.00%
Indicative — final stamp duty depends on the exact completion date and HMRC's published rules at that date. Always confirm with your conveyancer. Figures based on rules in force April 2026.
How first-time buyer relief works (England)
In England and Northern Ireland, first-time buyers pay:
- 0% on the first £300,000
- 5% on the slice from £300,000 to £500,000
- Full main rates above £500,000 (relief is withdrawn entirely — not tapered)
Both buyers on a joint purchase must qualify. One partner who's previously owned a half-share of a flat in any country withdraws the relief.
The £500,000 cliff edge
Most SDLT band changes only affect the next pound of tax. The £500k cliff is different — relief disappears entirely above that price. Compare:
| Price | Standard SDLT | First-time buyer | FTB saving |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £400,000 | £10,000 | £5,000 | £5,000 |
| £450,000 | £12,500 | £7,500 | £5,000 |
| £500,000 | £15,000 | £10,000 | £5,000 |
| £500,001 | £15,000.05 | £15,000.05 | £0 (relief gone) |
| £550,000 | £17,500 | £17,500 | £0 |
A £1 price increase past £500,000 can cost a first-time buyer £5,000 in lost relief. Negotiate to land at £500,000 or below if you're close.
Worked examples
Example 1 — Couple buying a £325,000 flat in Reading. Both first-time buyers. Tax: 5% × £25,000 = £1,250. Standard SDLT would be £3,750. £2,500 saved.
Example 2 — Solo buyer offering £495,000 on a London ex-council flat. First-time buyer. Tax: 5% × £195,000 = £9,750. The same flat at £505,000 would cost £15,250 in stamp duty, a swing of £5,500 for £10,000 of price. The £495k offer wins on tax alone.
Example 3 — Couple, but one previously inherited a share of a parental home. No FTB relief. £400k purchase = £10,000 standard SDLT. The FTB test fails because of the inherited share — even though it was sold years ago.
Scotland and Wales — different rules
- Scotland (LBTT first-time buyer relief): 0% up to £175,000, main LBTT rates above. The relief is worth at most £600 — much smaller than England's. A first-time buyer in Edinburgh paying £350,000 would pay £7,750.
- Wales (LTT): No first-time buyer relief. FTB and movers pay the same. A £350,000 purchase in Cardiff costs £7,500 regardless of buyer history.
Switch the country dropdown above for the exact figure for your nation.
What counts as "first-time buyer"
For SDLT purposes:
- Never owned a major interest in a residential property — anywhere in the world
- Includes leaseholds, freeholds and joint ownership
- Includes inherited property, even if subsequently sold
- Includes shares in family homes acquired via marriage or partnership
If any of these apply to either buyer on a joint purchase, FTB relief is unavailable.
Where Offrly fits
The £500,000 cliff makes price discovery especially valuable for first-time buyers. A property the agent prices at £510,000 might be reasonably valued at £495,000 — and that £15,000 of negotiation would save you £5,000+ in stamp duty alongside the cash. Offrly's AI reads each comparable's photos, and hyperlocal pricing resolves prices to the street rather than the postcode — in about 30 seconds. Free. No email. A sharper first-pass price than anything else online.
Other stamp duty calculators: £400,000 · £500,000 · £750,000 · £1m · Additional property · Non-resident · Scotland (LBTT) · Wales (LTT) · Head calculator
Disclaimer: Indicative figures based on HMRC SDLT rules in force April 2026. Not tax advice. Confirm the binding figure with your conveyancer before exchange.
FAQ: Stamp duty for first-time buyers (England, 2026)
How does first-time buyer relief work in England in 2026?
Stamp duty for first-time buyers in England is 0% on the first £300,000 and 5% on the slice from £300,000 to £500,000. The relief is withdrawn entirely if the purchase price exceeds £500,000 — at £500,001 you pay full main rates of around £15,050. Source: HMRC SDLT first-time buyer relief.
What is a first-time buyer for SDLT purposes?
An individual who has never owned a major interest in a residential property anywhere in the world — including via inheritance or as a joint owner. The test is per-buyer: on a joint purchase, every buyer must qualify.
Does first-time buyer relief work the same in Scotland and Wales?
No. Scotland (LBTT) has a separate FTB relief: 0% up to £175,000 and main LBTT rates above (so the FTB benefit is up to £600). Wales (LTT) has no first-time buyer relief at all — first-time buyers in Wales pay the same as anyone else.
What if I once inherited a half-share of a property?
You no longer qualify as a first-time buyer for SDLT, even if you sold the share. The HMRC test is whether you have ever held a major interest in a residential dwelling anywhere in the world.
Can I split the purchase to claim relief?
No. HMRC anti-avoidance rules look through structures designed to engineer relief. Buying with a non-FTB partner means no FTB relief on the purchase, full stop.