First-time buyer stamp duty relief in 2026 is meaningfully more generous than for standard buyers — but only up to a sharp threshold. This guide walks through exactly what you pay, when the relief applies, who counts as a first-time buyer, and the £500,000 cliff that catches buyers near the top of the relief band.
£500,000 cliff watch: first-time buyers paying £501,000-£520,000 pay materially more SDLT than first-time buyers paying £499,000. If you're shopping near the cliff, factor the SDLT step into every offer.
The 2026 first-time buyer rates
0% on the first £300,000 of the purchase price. 5% on the portion from £300,001 to £500,000. Above £500,000, the standard rates apply on the entire purchase price — there's no first-time buyer relief at all above the threshold.
On a £400,000 first-time buyer purchase: 0% on £300,000 + 5% on £100,000 = £5,000 SDLT. On a £500,000 purchase: 0% + 5% on £200,000 = £10,000.
The £500,000 cliff
At £500,001 the first-time buyer relief disappears entirely. The buyer pays standard rates on the whole purchase price.
On £500,000 a first-time buyer pays £10,000. On £501,000 a first-time buyer pays £15,050 (standard rates). The 'cliff' costs over £5,000 for a £1,000 increase in price. Worth knowing about if you're near the threshold.
Who counts as a first-time buyer?
You qualify if you (and any joint purchasers) have never owned residential property anywhere in the world. Inherited property counts as ownership. Property held jointly with a parent or sibling counts. Property in another country counts.
If you're buying jointly with someone who has owned before, the whole transaction loses first-time buyer status. There's no proportional relief based on the proportion of buyers who are first-timers.
Historical context: what changed in 2025
From September 2022 to March 2025, the first-time buyer nil-rate threshold was temporarily raised to £425,000 (with the 5% band going to £625,000). That temporary uplift expired on 31 March 2025, returning the thresholds to £300,000 / £500,000.
A few first-time buyers complete in 2025–2026 on contracts dated before April 2025 and still benefit from the old thresholds via grandfathered transitional rules. If you exchanged before 31 March 2025 but complete later, check with your solicitor.
Worked examples
First-time buyer at £200,000: £0 SDLT (entirely within the 0% band).
First-time buyer at £300,000: £0 SDLT.
First-time buyer at £350,000: 5% on £50,000 = £2,500 SDLT.
First-time buyer at £400,000: 5% on £100,000 = £5,000 SDLT.
First-time buyer at £500,000: 5% on £200,000 = £10,000 SDLT (relief boundary).
First-time buyer at £520,000: £16,000 SDLT (standard rates apply — no relief).
Strategies near the cliff
If you're at £515,000 and the seller will accept £498,000, you save not only £17,000 in price but also £5,050 in SDLT — a meaningful real-money difference. The cliff is itself a negotiating lever.
Buying at £499,000 with a higher allowance for refurbishment, fittings or chattels can sometimes be the right structure — but be careful: HMRC scrutinises chattel apportionments and won't accept inflated allocations.
Other costs of completion to remember
SDLT is not the only completion cost. Add: solicitor fees, mortgage fees, surveys, Land Registry fees, removal, and the first few months of fitting out. Total typical "non-deposit" purchase costs for a first-time buyer at £400,000 sit around £8,000-£15,000 over and above SDLT. First-time buyer deposit guide covers the budgeting.
Scotland and Wales: different schemes
Scotland uses Land and Buildings Transaction Tax (LBTT) with first-time buyer relief up to £175,000. Wales uses Land Transaction Tax (LTT) without a specific first-time buyer relief but with a higher general nil-rate band.
Both systems differ from SDLT in important ways — if you're buying in Scotland or Wales, work to those local rules rather than the English/Northern Ireland SDLT structure.
Frequently asked questions
How much stamp duty does a first-time buyer pay in 2026?
First-time buyers pay 0% SDLT on the first £300,000 of the purchase price and 5% on the portion from £300,001 to £500,000. On purchases above £500,000, standard rates apply on the entire purchase price with no first-time buyer relief. A first-time buyer at £400,000 pays £5,000 in SDLT.
Do first-time buyers pay stamp duty on a £400,000 house?
Yes — £5,000. The first £300,000 is at 0%, and 5% is charged on the £100,000 above that. The total is £5,000. Above £500,000, first-time buyer relief disappears entirely and standard rates apply on the whole price.
Who counts as a first-time buyer for stamp duty purposes?
Someone who has never owned residential property anywhere in the world, including jointly-held property, inherited property, and overseas property. If you're buying jointly with someone who has owned before, the whole transaction loses first-time buyer status — there's no proportional relief.
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