Stamp Duty for First-Time Buyers
What is it, how much will you pay, and do first-time buyers get a discount? Here's everything you need to know, in plain English.
Stamp Duty Land Tax (SDLT) is a tax you pay to the government when you buy a property in England or Northern Ireland over a certain price. It's one of those costs that catches a lot of first-time buyers off guard because it's separate from your deposit and mortgage.
The good news? As a first-time buyer, you get a significant discount. In fact, if you're buying a property under £300,000 — which covers a large chunk of the market in Cheshire and Staffordshire — you won't pay any Stamp Duty at all.
Let me walk you through exactly how it works, what the current rates are, and how much you might actually need to budget for.
First-Time Buyer Stamp Duty Rates
These are the current rates from 1 April 2025. They apply if you (and anyone you're buying with) have never owned a property before.
First-Time Buyer Rates
For properties up to £500,000
Up to £300,000
The first £300,000 of the property price
0%
No tax to pay
£300,001 to £500,000
Only the portion above £300,000
5%
On the amount over £300k
Over £500,000
FTB relief does not apply
Standard rates
No discount available
Important: The £500,000 cliff edge
If your property costs even £1 over £500,000, you lose the first-time buyer relief entirely and pay the standard rates on the whole purchase. On a £501,000 property, this means paying around £12,550 in Stamp Duty instead of the £10,000 you'd pay at £500,000. It's a significant jump, so keep this in mind when making offers.
Worked Examples: How Much Would I Pay?
Let's put some real numbers on it. Here's what first-time buyers would pay at different price points.
Property Price
£200,000
Under the £300k threshold — nothing to pay
Property Price
£300,000
Right at the threshold — still nothing to pay
Property Price
£350,000
5% only on the £50k above the threshold
Property Price
£400,000
Budget for this alongside your deposit
Property Price
£500,000
Maximum FTB relief property price
Property Price
£510,000
No FTB relief — standard rates apply
How Much Does FTB Relief Actually Save You?
Let's compare what a first-time buyer pays versus what a non-first-time buyer would pay on the same property.
| Property Price | FTB Pays | Non-FTB Pays | You Save |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
Non-FTB figures are for standard residential purchases (not additional properties). Rates correct as of April 2025.
What Changed in April 2025?
The government had temporarily raised the Stamp Duty thresholds during the pandemic. Those temporary rates ended on 31 March 2025, and the thresholds reverted to lower levels.
Before April 2025
Old First-Time Buyer Rates
- 0% on first£425,000
- 5% up to£625,000
From April 2025
Current First-Time Buyer Rates
- 0% on first£300,000
- 5% up to£500,000
What does this mean in practice?
If you're buying a property between £300,001 and £425,000, you'll now pay Stamp Duty where previously you wouldn't have. For example, on a £350,000 property, you'd now pay £2,500 — whereas before April 2025, you'd have paid nothing. It's not a huge amount, but it's worth factoring into your budget.
Practical Tips for Budgeting
A few things to keep in mind when planning your purchase.
Budget Separately
Stamp Duty is a separate cost from your deposit. You can't add it to your mortgage. Make sure you have enough savings to cover both your deposit and any Stamp Duty, plus your solicitor's fees and survey costs.
Watch the Thresholds
If a property is priced just above £300,000, it might be worth negotiating the price down to avoid Stamp Duty entirely. Similarly, be very careful around the £500,000 mark — going even slightly over means losing all FTB relief.
Use the Calculator
Before making an offer, run the numbers through our Stamp Duty Calculator so you know exactly what you'll owe. No surprises on completion day.
Continue Your Buying Journey
This guide is part of a step-by-step series covering the entire home-buying process. Here's where to go next.
Frequently Asked Questions
Need Help Working Out Your Budget?
Stamp Duty is just one piece of the puzzle. I can help you understand the full picture — deposit, fees, monthly payments, and everything in between. No pressure, no obligation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Stamp Duty rates and thresholds are set by the government and may change. The information on this page is based on rates effective from 1 April 2025 and was last reviewed in March 2026. Always check the latest rates on GOV.UK before making financial decisions.
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