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Do first time buyers pay Stamp Duty in 2025? 

  • Uncategorised
Dec 11, 2025

If you’re a first time buyer, you will need to pay Stamp Duty Land Tax (SDLT), but not at the same rate as existing homeowners.

 

In this article, we will look at how Stamp Duty for first time buyers differs, how much you’re expected to pay and how to pay it.

What is Stamp Duty (SDLT)?

SDLT is a tax paid to the government when you purchase land or property over a certain value threshold in England and Northern Ireland. You must pay Stamp Duty within 14 days of completion of your new home.

Who pays Stamp Duty?

It is the buyer’s legal responsibility to pay for Stamp Duty on time when purchasing a new home. However, a solicitor or conveyancer typically handles the HM Revenue & Customs (HMRC) side of the return and payment.

How Stamp Duty applies in Scotland (LBTT) & Wales (LTT)

In Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT) when buying a property over £145,000. For more details about LBTT, check Revenue Scotland’s website.

 

In Wales, if the sale was completed on or after 1 April 2018, Land Transaction Tax (LTT) applies when you purchase a property over £225,000. Visit the Welsh Revenue Authority website to find out rates and thresholds.

Do first time buyers pay Stamp Duty?

First time buyers must pay Stamp Duty, but only on properties over £300,001, thanks to first time buyer Stamp Duty relief.

Eligibility criteria

To be eligible for first time buyer Stamp Duty relief, you and anyone that you’re buying with must be a genuine first time buyer.

 

According to GOV.UK advice, this means ‘a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world’. This also includes acquisitions through inheritance or gift.

 

If you are buying a property jointly, you and your partner must both meet these conditions. However, if only one of you makes the purchase, the non-purchasing partner can have previously owned a property.

First time buyer Stamp Duty relief

Stamp Duty is not paid on properties worth up to £300,000. There is a reduced rate for properties within the £300,001-£500,000 range. Standard rates apply to properties over £500,000. See the table below for more details.

 

Purchase Price

Stamp Duty %

Up to £300,000

0%

£300,001-£500,000

5%

Over £500,000

Standard rates apply

How the relief has changed over time

Before April 1st 2025, first time buyers did not need to pay Stamp Duty on properties of up to £425,000 in value. They would then only pay 5% up to £625,000. As of April 2025, this has been reduced to £300,000, with 5% payable on homes worth £300,001-£500,000.

How much Stamp Duty do first time buyers pay?

As an example, if you’re a first time buyer purchasing a property for £500,000, the Stamp Duty is calculated as follows:

  • 0% on the first £300,000 = £0

  • 5% on the remaining £200,000 = £10,000

  • Total Stamp Duty you will pay = £10,000

 

First time buyers are not required to pay Stamp Duty on any properties up to the £300,000 threshold. SDLT will be applied to the remaining amount.

First time buyer relief in Scotland and Wales

In Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT). The first time buyer threshold raised to £175,000. In Wales, Land Transaction Tax (LTT) applies, and there is no first time buyer relief.

How and when to pay Stamp Duty

First time buyers will need to send a Stamp Duty return to HMRC and pay within 14 days of completion. If you have a solicitor, agent or conveyancer, they may do this on your behalf and add this onto their fees. However, first time buyers can file and pay the return themselves.

Can you add Stamp Duty to your mortgage?

You can add Stamp Duty to your mortgage, but you may be charged interest. Many buyers will instead pay Stamp Duty as a lump sum.

Common first time buyer Stamp Duty scenarios

Let us look at some common first time buyer scenarios:

  • Buying with someone who isn’t a first time buyer. You will not be entitled to Stamp Duty relief on properties up to £300,000 if you are buying with someone who is not a first time buyer.

  • Inherited property or previous partial ownership. If you have owned or partially owned any previous property, you will not be classed as a first time buyer and will not be able to qualify for Stamp Duty relief.

  • Shared Ownership & Stamp Duty for first time buyers. You may have to pay Stamp Duty when buying through Shared Ownership. The normal first time buyer Stamp Duty relief also applies, and this can be paid in stages or in one sum.

  • Non-UK residents & surcharge rules. Even if you are a first time buyer, non-UK residents in England and Northern Ireland will need to pay a 2% Stamp Duty surcharge when buying a new home. There is an additional 2% charge on top of Stamp Duty for non-UK residents, including those on first time buyer rates.

 

Ready to become a homeowner? We have a range of unique offers for both existing and first time buyers. Check out our First Time Buyers Guide for more helpful tips and information.

 

Call or visit our Sales Advisers to kickstart your homebuying journey today.