The first-time buyer stamp duty cliff at £500,000
First-time buyer stamp duty relief in England and Northern Ireland does not taper away. It stops. That creates a step at £500,000 that is easy to walk into during a negotiation.
The short answer
A first-time buyer paying £500,000 owes £10,000 in SDLT.
At £500,001 the relief is withdrawn completely and standard rates apply to the whole price, so the bill becomes £15,000.
One extra pound on the purchase price therefore costs £5,000 in extra stamp duty.
Why the relief disappears rather than tapering
Most UK tax thresholds phase out gradually. First-time buyer SDLT relief does not: it is available only where the purchase price is £500,000 or less. Above that the buyer falls back to the standard residential rates in full — 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1,500,000 and 12% above.
The relief itself is worth up to £5,000: nothing to pay on the first £300,000, then 5% between £300,000 and £500,000. Because it is capped, the saving is £5,000 at every price from about £300,000 up to the ceiling — and £0 immediately above it.
Stamp duty by purchase price
England and Northern Ireland residential SDLT, 2026/27. Standard rates assume the buyer owns no other property.
| Purchase price | Standard buyer | First-time buyer | Relief |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £250,000 | £2,500 | £0 | £2,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £350,000 | £7,500 | £2,500 | £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 | £15,000 | — |
| £550,000 | £17,500 | £17,500 | — |
| £600,000 | £20,000 | £20,000 | — |
Worked examples around the threshold
Offering £499,999 versus £500,001
At £499,999 a first-time buyer pays £10,000. At £500,001 they pay £15,000. The £2 difference in price costs £5,000.
What the seller would have to accept
To leave the buyer no worse off after crossing the ceiling, a price of £510,000 (SDLT £15,500) would need to come down to £500,000 (SDLT £10,000) — a £10,000 price reduction that saves the buyer £15,500 in total cash.
Stamp duty calculator · Mortgage affordability calculator · First-time buyer guide · First-time buyer relief explained
SDLT thresholds used here are published with their source on UK rates and thresholds 2026/27.
The underlying figures as data
Every number in the table above is also published as a JSON file, with the same methodology, assumptions and source list attached, so it can be checked or reused without re-typing it: ftb-sdlt-relief-2026-27.json.
The SDLT amounts are UKCalc calculations on published statutory bands, not an official HMRC dataset. The statutory inputs behind it are the same ones published on the verified UK rates page.
What is fact, what is assumption, and what is UKCalc's analysis
- Nil-rate £125,000, 2% band to £250,000, 5% to £925,000, 10% to £1,500,000, 12% above
- First-time buyer nil-rate £300,000
- Relief unavailable above £500,000
- Buyer qualifies as a first-time buyer and the property is their only residential property.
- No additional-property surcharge and no non-resident surcharge.
- Purchase price equals chargeable consideration.
- Every figure in the table, computed from the statutory bands
- The £5,000 step at the ceiling
- The worked negotiation examples
Sources
Limitations
- Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax; neither is covered here.
- Wales has no first-time buyer relief.
- Leasehold purchases may attract SDLT on the lease premium and rent separately.
- Rates and thresholds can change at a fiscal event.
Statutory figures last verified 2 September 2026 against the sources above, from UKCalc statutory registry 2.5.0. This is general information, not financial or tax advice.