Do first time buyers pay stamp duty?

The short answer

If you're a first-time buyer and the property costs £300,000 or less, you pay no stamp duty at all. Zero.

If the property costs between £300,001 and £500,000, you pay 5% on the amount above £300,000. The first £300,000 is still tax-free.

If the property costs over £500,000, you don't qualify for first-time buyer relief and you pay the standard stamp duty rates instead.

What this means for Cheshire house prices

Most first-time buyers in Alsager, Sandbach, Crewe, and Congleton are looking at properties well under £300,000. That means the majority of you won't pay any stamp duty at all. Here's what it looks like for typical local prices:

What changed in April 2025?

Between September 2022 and March 2025, the government temporarily raised the first-time buyer threshold to £425,000 (and the maximum property price to £625,000). That was a pandemic-era boost that's now ended.

From 1 April 2025, the thresholds dropped back to:

• £300,000 — nil-rate band for first-time buyers (was £425,000)
• £500,000 — maximum property price for FTB relief (was £625,000)

For most buyers in South Cheshire, this change doesn't make a huge difference — the average first-time buyer property here is well under £300,000. But if you're looking at something in the £300,000-£425,000 range, you'll now pay stamp duty where you wouldn't have before.

Who counts as a first-time buyer?

HMRC's definition is straightforward: you've never owned a residential property anywhere in the world. That includes:

• Properties you've owned outright
• Properties you've had a mortgage on
• Inherited properties (even if you sold them immediately)
• Properties abroad

If you're buying with someone who has owned before, you both lose first-time buyer relief. The whole purchase is assessed at standard rates. This catches some people out — it's worth checking before you assume you qualify.

How do I pay stamp duty?

You don't have to do anything yourself. Your solicitor handles the stamp duty payment as part of the conveyancing process. They'll calculate the amount, include it in your completion statement, and submit the return to HMRC. It's paid on completion day from the funds you've provided.

Just make sure you've budgeted for it — if your property is over £300,000, you'll need to have the stamp duty amount available on top of your deposit and other costs.

Want an exact figure?

Our Stamp Duty Calculator will give you the exact amount based on your purchase price and buyer status. Or just ask me — I can tell you in 30 seconds.