First-time buyers in England and Northern Ireland pay no stamp duty on the first £300,000 and 5% on the part between £300,000 and £500,000. Above £500,000 the relief disappears entirely and you pay the same as everyone else.
These are the rates that have applied since 1 April 2025. They save a first-time buyer up to £5,000 against a home mover, but the relief has a hard stop, and a small change in price near the limit can cost thousands.
First-time buyer rates
Stamp duty is charged in slices, like income tax. Each rate applies only to the part of the price inside its band.
| Part of the price | First-time buyer | Home mover |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 to £250,000 | 0% | 2% |
| £250,001 to £300,000 | 0% | 5% |
| £300,001 to £500,000 | 5% | 5% |
| Over £500,000 | No relief, standard rates on the whole price | 5% to 12% |
Here is the working for a £425,000 flat bought by a first-time buyer. Only the £125,000 above £300,000 is taxed:
| Portion of the price | Rate | Tax |
|---|---|---|
| £0 to £300,000 | 0% | £0 |
| £300,000 to £425,000 | 5% | £6,250 |
| Total stamp duty | 1.47% | £6,250 |
What you pay at each price
The saving grows until £300,000, holds at £5,000 all the way to £500,000, then drops to nothing.
| Price | First-time buyer | Home mover | Saving |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £525,000 | £16,250 | £16,250 | £0 |
| £550,000 | £17,500 | £17,500 | £0 |
Below £300,000 the saving is smaller, because home movers also pay nothing on the first £125,000. At £250,000 a first-time buyer saves £2,500, which is the whole bill a home mover would face. From £300,000 upwards, each extra £1,000 on the price adds £50 of tax for both kinds of buyer, which is why the saving stays flat until the limit.
The £500,000 cliff edge
Relief is all or nothing. At exactly £500,000 a first-time buyer pays £10,000. At £500,001 the relief is lost on the whole price and the bill becomes £15,000.
Paying £1 over £500,000 adds £5,000 to a first-time buyer's stamp duty
That changes how you negotiate. A £510,000 asking price costs £15,500 in stamp duty; talk it down to £495,000 and the tax falls to £9,750. Getting £15,000 off the price saves you £20,750 in total. If a seller will not move below £500,000, it can be worth offering exactly £500,000 and buying fixtures or carpets separately at a fair price.
Do not inflate or split the price artificially to get under the limit. Any separate payment for fittings has to reflect what they are really worth, and HMRC can challenge a split that does not and charge the tax you avoided.
Who counts as a first-time buyer
- You have never owned a home, or a share of one, anywhere in the world, including one you inherited.
- You are buying the property to live in as your main home.
- If you buy with someone else, every buyer must be a first-time buyer. If your partner has owned before, the relief does not apply and you pay home mover rates.
There is no separate application. The relief is claimed on the stamp duty return your solicitor files, so tell them early that you are a first-time buyer and make sure the figure on their completion statement reflects it. On a £425,000 purchase that single tick is worth £5,000.
To see how the stamp duty fits into the rest of your costs, work out your borrowing in the how much can I borrow guide, then the monthly payment in the mortgage calculator.
Scotland, Wales and paying the bill
Stamp duty land tax covers England and Northern Ireland only. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with their own bands and reliefs, so these figures do not apply there.
Your solicitor or conveyancer normally files the return and pays the tax on completion day, using money you send them in advance. Budget for it alongside your deposit. The stamp duty calculator works out any price for first-time buyers, home movers and second homes, and there are ready worked pages for stamp duty on £300,000 and stamp duty on £500,000.
Stamp duty calculatorStamp duty for first-time buyers, home movers and second homes. Open itQuestions people ask
Do first-time buyers pay stamp duty?
Not on the first £300,000. Between £300,000 and £500,000 you pay 5%, so the most any first-time buyer pays with relief is £10,000.
What happens if the house costs more than £500,000?
First-time buyer relief is lost completely and you pay the standard rates on the whole price. At £525,000 that is £16,250.
How much stamp duty on a £400,000 house for a first-time buyer?
£5,000: nothing on the first £300,000 and 5% on the remaining £100,000. A home mover would pay £10,000.
Does first-time buyer relief apply in Scotland or Wales?
No. These rates cover England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own bands.
