Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. From April 2026, the stamp duty threshold for first-time buyers was raised to £450,000, providing some additional relief to buyers in higher-priced markets.
2026-27 Stamp Duty Rates for First-Time Buyers
First-time buyers purchasing properties up to £450,000 pay no stamp duty on the first £450,000. On the portion between £450,000 and £625,000, a rate of 5% applies.
Properties above £625,000 do not qualify for first-time buyer relief — standard rates apply from pound one.
Examples:
- Buying at £300,000: £0 stamp duty
- Buying at £450,000: £0 stamp duty
- Buying at £500,000: £2,500 (5% of £50,000 above the threshold)
- Buying at £625,000: £8,750 (5% of £175,000)
- Buying at £700,000: No relief — standard rates apply: £25,000
Standard SDLT Rates (Non-First-Time Buyers)
- Up to £125,000: 0%
- £125,001 – £250,000: 2%
- £250,001 – £925,000: 5%
- £925,001 – £1.5 million: 10%
- Over £1.5 million: 12%
Additional Dwelling Surcharge
Buying a second home or investment property incurs a 3% surcharge on top of standard rates.
What Counts as 'First-Time Buyer'?
You must never have owned a residential property anywhere in the world — not in the UK, not overseas. If you are purchasing jointly and either buyer has previously owned property, neither buyer qualifies for first-time buyer relief.
