What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax paid to HMRC when you buy a property in England or Northern Ireland above a certain price threshold. It must be paid — and a return filed — within 14 days of completion. Your solicitor or conveyancer handles this on your behalf as part of the conveyancing process.
SDLT is calculated in bands — each rate applies only to the portion of the price that falls within that band, not to the full purchase price. This works similarly to income tax bands.
Standard SDLT Rates 2026/27 (England)
| Purchase Price | Standard Rate | First-Time Buyer Rate |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001–£250,000 | 2% | 0% |
| £250,001–£300,000 | 5% | 0% |
| £300,001–£500,000 | 5% | 5% |
| £500,001–£925,000 | 5% | No relief — standard rates apply |
| £925,001–£1.5m | 10% | No relief — standard rates apply |
| Above £1.5m | 12% | No relief — standard rates apply |
Key change from 31 March 2025: The temporary increased thresholds (introduced September 2022) expired. The FTB nil-rate threshold reverted from £425,000 to £300,000. Properties up to £500,000 qualify (down from £625,000). If your property is above £500,000, standard rates apply in full — no first-time buyer relief is available.
First-Time Buyer Relief Explained
First-time buyer relief means you pay 0% SDLT on the first £300,000 of the purchase price, provided the property costs no more than £500,000. On the portion between £300,001 and £500,000, you pay 5%.
For properties above £500,000, no relief is available — standard rates apply to the full purchase price.
Maximum saving
On a £300,000 property, a standard home mover would pay £5,000 SDLT (0% on £125k, 2% on next £125k = £2,500, 5% on £50k = £2,500). A first-time buyer pays £0. Maximum saving: £5,000.
On a £500,000 property: standard rate = £15,000. FTB rate = 5% of £200,000 (£300,001–£500,000) = £10,000. Saving: £5,000. The saving is capped at £5,000 regardless of purchase price (within the qualifying range).
Strict Eligibility Criteria
The definition of "first-time buyer" for SDLT purposes is strict and broader than most people expect:
- Never owned property anywhere in the world. This includes residential property abroad. If you owned an apartment in Spain ten years ago and have since sold it, you are not a first-time buyer for SDLT purposes.
- Freehold or leasehold interest. You must never have held a major interest (freehold or leasehold) in a dwelling anywhere in the world. A minor interest (such as a short-term lease of fewer than 21 years) does not count against you.
- Must be your main residence. The property must be purchased as your only or main residence. You cannot claim FTB relief on a buy-to-let property or a second home.
- Property must be £500,000 or less. If the property price exceeds £500,000, standard SDLT rates apply in full.
Common misconceptions: Inheriting a property (even a small share) counts as owning property — which could disqualify you. Receiving a property as a gift counts. Owning commercial property does not count against you (residential only). Being a guarantor on someone else's mortgage does not count.
Joint Purchase Rules
When buying jointly, every buyer must be a first-time buyer for the relief to apply. If any one person in the transaction has previously owned a property, none of the buyers can claim the relief.
This is a frequent stumbling block:
- First-time buyer + parent with own home → no FTB relief (even if parent is just helping with the deposit and going on the mortgage)
- Two first-time buyers together → full FTB relief applies
- First-time buyer purchasing from a partner who previously owned → no relief unless buying as sole purchaser
If you are thinking of adding a parent or partner to the mortgage and they are not a first-time buyer, consider whether there are other ways to structure the purchase that preserve your eligibility for relief.
Worked Examples
| Purchase Price | Standard SDLT | FTB SDLT | Saving |
|---|---|---|---|
| £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 |
| £550,000 | £17,500 | £17,500 | £0 (no relief) |
How FTB SDLT is calculated on a £400,000 property
| £0–£300,000 at 0% | £0 |
| £300,001–£400,000 at 5% | £5,000 |
| Total SDLT for first-time buyer | £5,000 |
| Standard SDLT comparison (no relief) | £10,000 |
| Saving from FTB relief | £5,000 |
How to Claim the Relief
You do not need to contact HMRC directly. Your solicitor or licensed conveyancer handles the SDLT return on your behalf as part of the conveyancing process. You confirm to your solicitor that you are a first-time buyer and they apply the relief when filing the SDLT return at completion.
You will be asked to sign a declaration confirming you have never owned a property. Making a false declaration is a criminal offence and could result in penalties, repayment of the relief plus interest, and potentially prosecution.
SDLT must be paid within 14 days of completion. Your solicitor normally has the funds to do this from your completion money, so you do not need to arrange a separate payment.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland uses its own land transaction tax — LBTT — administered by Revenue Scotland, not HMRC. First-time buyers in Scotland have their own relief:
| Purchase Price (Scotland) | Standard LBTT | FTB LBTT |
|---|---|---|
| Up to £145,000 | 0% | 0% |
| £145,001–£175,000 | 2% | 0% (FTB relief) |
| £175,001–£250,000 | 2% | 2% |
| £250,001–£325,000 | 5% | 5% |
| £325,001–£750,000 | 10% | 10% |
| Above £750,000 | 12% | 12% |
Scotland's FTB relief applies to the first £175,000 at 0% (compared to £145,000 under standard LBTT). The maximum saving is relatively modest — approximately £600 on properties between £145,001 and £175,000.
Wales: Land Transaction Tax (LTT)
Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. As of 2026, Wales does not have a specific first-time buyer relief equivalent to England's or Scotland's. The standard LTT rates apply to all purchases:
| Purchase Price (Wales) | LTT Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001–£400,000 | 6% |
| £400,001–£750,000 | 7.5% |
| £750,001–£1.5m | 10% |
| Above £1.5m | 12% |
All buyers in Wales benefit from the zero-rate band up to £225,000, which effectively provides some relief for lower-value properties — but there is no additional relief specifically for first-time buyers.
Calculate Your Exact Stamp Duty
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