Stamp duty for first-time buyers: where it stands in 2026
First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax on the first £300,000 of a home and 5% on the slice up to £500,000 — but lose the relief entirely above £500,000. These thresholds, in force since April 2025, were left unchanged in the latest Budget.
The first-time buyer rules in 2026
If you’re buying your first home in England or Northern Ireland, Stamp Duty Land Tax (SDLT) works in bands. You pay nothing on the first £300,000, then 5% on the portion between £300,001 and £500,000. Buy for more than £500,000 and first-time buyer relief disappears completely — you pay standard rates on the whole price.
These thresholds have applied since 1 April 2025, when the more generous temporary reliefs (0% up to £425,000, with relief stretching to £625,000) came to an end. The latest Budget left them unchanged, so this is the position for the 2026-27 tax year.
A worked example — and the £500,000 cliff-edge
Take a £350,000 first home. You pay 0% on the first £300,000 and 5% on the remaining £50,000 — so £2,500 in total. You can run your own figure through the stamp duty calculator in seconds.
The number to watch is £500,000. A first-time buyer paying exactly £500,000 owes £10,000, but go a pound over and the relief vanishes — standard rates apply from £125,000 upwards, and the bill jumps sharply. If you’re negotiating near that line, a small price change can cost far more than it looks.
If you’re not a first-time buyer
For movers and other buyers, the standard residential nil-rate band is £125,000: you pay 2% on the slice to £250,000, then 5% to £925,000, and more above that. Buying an additional property — a second home or a buy-to-let — adds a 5% surcharge on top of those standard rates.
Scotland and Wales are different
SDLT only covers England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT), where first-time buyers get a £175,000 nil-rate band with no upper price cap. Wales charges Land Transaction Tax (LTT), which has no first-time buyer relief and a £225,000 nil-rate band for everyone. Check which one applies before you budget.
First-time buyer SDLT at a glance
- FTB nil-rate (England & NI)
- 0% to £300,000
- FTB rate £300,001–£500,000
- 5%
- FTB relief lost above
- £500,000
- Standard nil-rate band
- £125,000
- Additional-property surcharge
- 5%
- SDLT on a £350,000 first home
- £2,500
Source: GOV.UK / HMRC · England & Northern Ireland · rules in force since 1 April 2025.
Sources & method
Figures verified against primary sources on 7 April 2026.
- GOV.UK — Stamp Duty Land Tax: residential property rates
- GOV.UK / HMRC — Stamp Duty Land Tax relief for first-time buyers
- Revenue Scotland — LBTT first-time buyer relief
- GOV.WALES — Land Transaction Tax rates and bands
Bands checked against GOV.UK and HMRC guidance on 7 April 2026. Tax rules can change at fiscal events — confirm the current position before you buy.
This article is general information, not tax or mortgage advice. Stamp Duty Land Tax applies in England and Northern Ireland; Scotland and Wales operate their own systems.