Key takeaways
No stamp duty on properties up to £300,000. For properties between £300,001 and £500,000, you'll pay 5% on the portion above £300,000
You must have never owned property anywhere in the world to qualify, and if buying jointly, all parties must be first-time buyers
Properties over £500,000 don't qualify for relief and pay standard rates
Wales has different rules with Land Transaction Tax and no first-time buyer relief
When you’re buying your first home, you may need to budget for Stamp Duty Land Tax (SDLT) – a government tax on property purchases in England. However, as a first-time buyer you’re entitled to significant relief depending on the property price.
Understanding how stamp duty works, what you’re entitled to as a first-time buyer, and when you’ll need to pay it is crucial for budgeting for your purchase, so let’s break it down.
Stamp duty is a tax you pay to HM Revenue and Customs (HMRC) when you buy a property in England worth more than a certain threshold. It’s calculated as a percentage of the property’s purchase price, with different rates applying to different price bands – similar to how income tax works.
You’ll need to pay SDLT whether you’re buying with a mortgage or cash, and it applies to freehold and leasehold properties.