Stamp Duty For First Time Buyers
How Much Stamp Duty Do First Time Buyers Pay?.
Since November 2017, first-time buyers in England and Northern Ireland purchasing a home for £300,000 or less have not had to pay any stamp duty on their purchase.
Temporary measures during the coronavirus pandemic (2020–2021) and later reforms in September 2022 increased these thresholds to support the property market. These enhanced reliefs ended on 31 March 2025.
From 1 April 2025, the following rules apply for first-time buyers in England and Northern Ireland:
0% stamp duty on the first £300,000 of the purchase price
5% on the portion between £300,001 and £500,000
If the property costs more than £500,000, the normal residential stamp duty rates apply (no first-time buyer relief).
If you are buying a property in Scotland, you’ll pay no LBTT as a first-time buyer if the property is worth less than £175,000. No-one in Wales pays LTT on property costing less than £180,000.
See details on stamp duty rates in Scotland and Wales here.
To calculate exactly how much stamp duty costs in the UK are, use our free online stamp duty calculator
Under normal circumstances, first-time buyers are not completely exempt from paying stamp duty—the amount depends on the purchase price. The current relief (0% up to £300,000; 5% up to £500,000) means first-time buyers can make substantial savings compared with standard rates, but only if the property costs £500,000 or less.
Stamp Duty Rates for First Time Buyers.
From 1 April 2025, first-time buyers in England or Northern Ireland will pay no Stamp Duty on properties costing up to £300,000.
For properties costing between £300,001 and £500,000, you will pay no Stamp Duty on the first £300,000, but pay Stamp Duty at the rate of 5% on the remaining amount (up to £200,000).
If the property you’re buying is worth over £500,000, you will pay the standard rates of Stamp Duty and will not qualify for first-time buyer relief.
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|---|---|---|---|---|---|
| £0 | £500,000 | 3% | |||
| £500,001 | £925,000 | 8% | |||
| £925,001 | £1.5 MILLION | 13% | |||
| Over £1.5 million | 15% | ||||
First Time Buyers In Scotland.
If you are buying your first home in Scotland, you’ll pay no Land and Buildings Transaction Tax (LBTT) if the property costs £175,000 or less.
If your home is worth more than £175,000, you will pay LBTT at the normal residential rates, with the first £175,000 tax-free.
Here are the current Scottish LBTT rates for first-time buyers:
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|---|---|---|---|
| £0 – £175,000 | 0% | ||
| £175,001 – £250,000 | 2% | ||
| £250,001 – £325,000 | 5% | ||
| £325,001 – £750,000 | 10% | ||
| £750,00 and above | 12% |
First Time Buyers In Wales.
In Wales, stamp duty is replaced by the Land Transaction Tax (LTT).
If you are buying your first home in Wales, you’ll pay no LTT if the property costs £180,000 or less.
If your home costs more than £180,000, you will pay LTT at the normal residential rates, with the first £180,000 tax-free.
Here are the current Welsh LTT rates for residential buyers (including first-time buyers):
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|---|---|---|---|
| Up to £180,000 | 0% | ||
| £250,001-£400,000 | 5% | ||
| £400,001-£750,000 | 7.5% | ||
| £750,001-£1,500,000 | 10% | ||
| £1,500,000 Upwards | 12% |
Am I A First Time Buyer?
Who Qualifies For First Time Buyer Status?
Being a first time buyer is a very desirable status to have in the property world. This is because first-time buyers have no chain and their position is usually less complicated than those who do. It can take away a lot of the stress of buying/selling property. Here are the ways in which you can qualify for first time buyer status:
- If you are a single person who has never owned a home before (this includes in any other country), you will be regarded as a first-time buyer. The same applies if you are a couple wanting to buy a house and NEITHER of you have ever previously bought a home.
- If you have owned a commercial property before but not a dwelling you qualify as being a first time buyer. This is confusing as technically you own/have owned a property in theory. However, the rules about first time buyers surround property that are used as homes. So if you own a commercial property such as a shop/salon/office etc, you are still a first time buyer.
Be aware though, if the commercial property you own, or have owned, has living quarters attached/included in the building, you are NOT a first time buyer.
Who Is Not A First Time Buyer?
- If you own or have owned property (a dwelling/home) that you inherited, you are not a first time buyer. The rules involve who has owned property, not bought property.
- The same applies if you own a home that has been given to you as a gift. Some people are given houses by kind relatives; these people are no longer first time buyers.
- If you are part of a couple who want to buy a house and one of you falls into either of the two categories above, you will not qualify as first time buyers on your purchase.
- If you have never owned a home and plan to buy one as a landlord (ie: buy-to-let) then you are unable to take advantage of the Government’s stamp duty exemption rules.