Last reviewed: June 2026
TL;DR- First time buyers in England pay no SDLT on the first £425,000 of a first home purchase, and 5% on the portion between £425,000 and £500,000.
- Purchases above £500,000 do not qualify for first time buyer relief - standard SDLT rates apply to the full purchase price.
- For the relief to apply, all buyers in a joint purchase must be first time buyers - if one buyer previously owned a property, the relief does not apply.
- Scotland (LBTT), Wales (LTT) and Northern Ireland have their own property transaction taxes with different first time buyer provisions.
First Time Buyer SDLT Relief in England (2026)
Stamp Duty Land Tax (SDLT) relief for first time buyers in England applies to purchases completing on or after a specific effective date. Under the current rules (confirmed for 2026 following the 2024 Autumn Budget):
- No SDLT on the first £425,000 of a qualifying first home purchase.
- 5% SDLT on the portion between £425,000 and £500,000.
- No first time buyer relief on purchases above £500,000 - standard rates apply to the full purchase price.
On a £350,000 first home, a first time buyer pays zero SDLT. On a £480,000 first home, they pay 5% on £55,000 = £2,750. On a £520,000 first home, standard SDLT rates apply with no relief.
These thresholds should be verified against the current GOV.UK SDLT calculator, as thresholds are subject to change in fiscal events.
Who Qualifies as a First Time Buyer for SDLT
HMRC's definition of a first time buyer for SDLT relief purposes: an individual who has never previously owned a freehold or leasehold interest in a residential property in the UK or abroad. For joint purchases, all buyers must meet this definition for the relief to apply. If one buyer has previously owned a property - even if they no longer own it, and even if it was overseas - the relief does not apply to the joint purchase.
Common situations that disqualify first time buyer relief include: inheriting a share of a property (even a small share as a child); owning an overseas property; being named on a previous property purchase that has since been sold. The definition is strict and HMRC applies it literally.
Scotland, Wales and Northern Ireland
Property transaction taxes in devolved nations have their own first time buyer provisions, thresholds and rates:
- Scotland: Land and Buildings Transaction Tax (LBTT) with a first time buyer relief on the portion of the purchase price up to the applicable LBTT threshold. Current rates and thresholds are on the Revenue Scotland website.
- Wales: Land Transaction Tax (LTT) has a different rate structure from SDLT. First time buyer relief in Wales should be checked on the Welsh Revenue Authority website.
- Northern Ireland: SDLT applies as in England, with the same first time buyer relief.
SDLT and Purchase Costs Planning
SDLT is one of the largest upfront costs of a property purchase. First time buyer relief eliminates or reduces this cost for properties within the thresholds, freeing funds for the deposit, legal fees and survey. Buyers should use the GOV.UK SDLT calculator to determine their exact liability before agreeing to purchase, as SDLT must be paid within 14 days of completion.
Frequently Asked Questions
What if one of us has owned a property before in a joint purchase?
If any buyer in a joint purchase has previously owned a residential property, the first time buyer SDLT relief does not apply to the entire transaction. Standard SDLT rates apply. Additionally, if the non-first-time-buyer still owns another residential property, the additional dwelling SDLT surcharge also applies. Both buyers must be genuine first time buyers for the relief to be available.
Does buying through shared ownership qualify for first time buyer SDLT relief?
Yes. First time buyers purchasing through shared ownership can claim SDLT relief. They can elect to pay SDLT either on the initial share purchased (with relief applying to that transaction) or on the full market value of the property (with relief applying if the full value is within the threshold). Staircasing transactions (buying additional shares) after the initial purchase are separate SDLT events. The HMRC guidance on shared ownership SDLT should be confirmed with the solicitor handling the transaction.
Is stamp duty payable on a shared ownership staircasing transaction?
SDLT may apply on staircasing transactions depending on the size of the additional share purchased and the cumulative ownership percentage. Staircasing above 80% typically triggers a new SDLT assessment. The detailed SDLT treatment of staircasing depends on whether the initial SDLT was paid on the share or on the full market value. A solicitor experienced in shared ownership should advise on the specific SDLT position for any staircasing transaction.
Can I claim SDLT relief if I buy a property jointly with a family member who is not a first time buyer?
No. All buyers in the transaction must meet the first time buyer definition. A joint purchase where one party is a first time buyer and one is not does not qualify for first time buyer SDLT relief. Standard rates apply to the full purchase price. Additionally, if the non-first-time-buyer still owns other property, the additional dwelling surcharge applies.
