Stamp Duty for First-Time Buyers in England
How Stamp Duty Land Tax works in England and Northern Ireland for first-time buyers, home movers and second homes, with worked examples.
By the Handy Tools Desk team · Published
Stamp Duty Land Tax (SDLT) is paid when you buy a home or land in England or Northern Ireland above a certain price. It can be one of the biggest costs of moving, so it is worth knowing the number before you make an offer. This article explains the rates, the relief for first-time buyers and the extra charge on second homes, with worked examples.
For your own price, use the Stamp Duty calculator.
Scotland and Wales have their own taxes instead of SDLT (Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales), with different rates. This article covers England and Northern Ireland only.
The standard rates
Like income tax, Stamp Duty is charged in slices. Each rate applies only to the part of the price inside that band:
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| The next part, up to £250,000 | 2% |
| Up to £925,000 | 5% |
| Up to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
These are the rates that apply if you are moving home and replacing your main residence.
First-time buyer relief
If you and everyone you are buying with have never owned a home anywhere in the world, you can claim first-time buyer relief. You pay:
- nothing on the first £300,000,
- 5% on the part from £300,000 up to £500,000.
The relief only applies if the price is £500,000 or less. Above that, first-time buyers pay the standard rates on the whole price – there is no partial relief.
Worked examples
A £300,000 home:
- home mover: £5,000
- first-time buyer: £0
A £450,000 home:
- home mover: £12,500
- first-time buyer: £7,500 (5% on the part above £300,000)
A £550,000 home:
- home mover: £17,500
- first-time buyer: also £17,500 – the price is over £500,000, so the relief does not apply.
Second homes and buy-to-let
If you will own more than one home after the purchase – a second home, a holiday let or a buy-to-let – a surcharge of 5% is added on top of each band, so it applies to the whole price. It does not apply to properties under £40,000.
Example: a £250,000 buy-to-let flat costs £15,000 in Stamp Duty, compared with £2,500 for someone replacing their main home.
If you sell your previous main home within a set period after buying the new one, you may be able to claim the surcharge back – GOV.UK explains the rules.
Buyers who are not UK resident
Buyers who are not resident in the UK for SDLT purposes pay a further 2% on top of the rates above. Residence for SDLT has its own test, so check GOV.UK if you have spent time abroad.
When and how it is paid
Your solicitor or conveyancer normally files the SDLT return and pays the tax for you, and adds it to their completion statement. It has to be paid within a short deadline after completion, so make sure the money is part of your budget from the start.
Budgeting for the rest of the move
Stamp Duty is only one cost. Add legal fees, surveys and removals, and look at your monthly mortgage payment too – our loan repayment calculator shows the monthly cost for any amount, rate and term.
Frequently asked questions
Who counts as a first-time buyer?
You count as a first-time buyer if you have never owned a home or a share of a home anywhere in the world, including one you inherited. If you are buying with someone else, everyone buying must be a first-time buyer for the relief to apply.
What if I buy with a partner who has owned a home before?
Then the purchase does not qualify for first-time buyer relief, and the standard rates apply – plus the surcharge if either of you will still own another home after the purchase.
Is Stamp Duty worked out on the asking price?
No. It is worked out on the price you actually pay. If you agree a lower price than the asking price, Stamp Duty is charged on the agreed price.
Do I pay Stamp Duty on a shared ownership home?
Shared ownership has its own rules: you can choose to pay on the full market value straight away, or pay in stages as you buy more shares. GOV.UK explains both options; our calculator covers standard purchases.
Can the rates change?
Yes. The government can change Stamp Duty rates and thresholds at a Budget or other fiscal event. The figures on this page come from GOV.UK and are checked regularly – the date of the last check is shown under Sources.
Open the stamp duty calculator (england)
Sources
Figures checked against these sources on 13 November 2026.