First-time buyer stamp duty in 2026: the £300,000 rule

In short

First-time buyers in England and Northern Ireland pay 0% on the first £300,000 and 5% on £300,001 to £500,000.

A £300,000 first home has no stamp duty. A home mover pays £5,000 at the same price.

Above £500,000 the relief disappears completely, so £1 over the limit costs £5,000 more.

Every buyer on the purchase must be a first-time buyer who has never owned a home, and must plan to live there.

Scotland and Wales have their own taxes with different rules.

First-time buyer relief is the biggest stamp duty saving most people will ever get. It’s simple once you see the numbers, but the £500,000 limit catches people out.

The rates for first-time buyers

In England and Northern Ireland, first-time buyers pay:

Part of the price	Rate
Up to £300,000	0%
£300,001 to £500,000	5%

These rates apply only when the whole price is £500,000 or less. They have been in place since 1 April 2025, and the Budget on 28 October 2026 left them unchanged.

Worked examples

Price	First-time buyer	Home mover	You save
£250,000	£0	£2,500	£2,500
£300,000	£0	£5,000	£5,000
£350,000	£2,500	£7,500	£5,000
£400,000	£5,000	£10,000	£5,000
£500,000	£10,000	£15,000	£5,000
£500,001	£15,000	£15,000	£0

From £300,000 to £500,000 the saving stays at £5,000, because both buyers pay 5% on that slice. Below £300,000 the saving is whatever a home mover would pay.

The £500,000 cliff edge

The relief isn’t tapered. At £500,000 a first-time buyer pays £10,000. At £500,001 they lose the relief altogether and pay the normal rates on the whole price: £15,000. One pound more on the price costs £5,000 more in tax.

If you’re negotiating just above £500,000, it’s worth knowing that number. Splitting the price artificially, for example by paying separately for fixtures that are really part of the home, can be treated as tax avoidance, so get advice from your conveyancer before doing anything like that.

Who counts as a first-time buyer

You have never owned a residential property, or a share in one, in the UK or anywhere else, including one you inherited.
Everyone buying must be a first-time buyer. If you buy with a partner who has owned before, the relief doesn’t apply.
You must intend to live in the home as your main residence.

Try your own price

You pay

£2,500

£2,500 on a £350,000 home as a first-time buyer. That's 0.71% of the price.

Stamp Duty Land Tax, worked band by band. Amounts are rounded down to the pound, as the tax authority does.
Band	Rate	Price in band	Tax
£0 to £300,000	0%	£300,000	£0
£300,001 to £500,000	5%	£50,000	£2,500
Total to pay			£2,500

First-time buyer relief applies because the price is £500,000 or less.

Scotland and Wales are different

Scotland uses Land and Buildings Transaction Tax. First-time buyers there get a nil-rate band of £175,000 instead of £145,000, which saves up to £600. See the LBTT calculator.

Wales uses Land Transaction Tax and has no first-time buyer relief. Everyone buying their only home pays nothing up to £225,000. See the LTT calculator.

When you pay

Your conveyancer files the stamp duty return and pays HMRC within 14 days of completion, and will ask you for the money before completion day. Build it into your budget alongside the deposit, legal fees and survey.

Common questions

Do first-time buyers pay stamp duty on a £300,000 house?

No. In England and Northern Ireland, first-time buyers pay 0% on the first £300,000, so a £300,000 first home has no stamp duty to pay.

How much stamp duty does a first-time buyer pay on £400,000?

£5,000. The first £300,000 is at 0% and the remaining £100,000 at 5%.

What if I buy with someone who has owned a home before?

Then first-time buyer relief doesn't apply to the purchase. Every buyer must be a first-time buyer, so you would pay the normal rates.

Was the first-time buyer limit £425,000?

It was until 31 March 2025. From 1 April 2025 the nil-rate band for first-time buyers fell to £300,000, and the maximum price for relief fell from £625,000 to £500,000.