Stamp Duty Land Tax (SDLT) is paid by the buyer when you purchase a property in England or Northern Ireland. Wales has Land Transaction Tax and Scotland has Land and Buildings Transaction Tax, both with their own rates. This guide covers SDLT in England.
First-time buyer relief
First-time buyers get a discount on stamp duty. As of 2026, the thresholds work as follows:
If the property costs more than £500,000, you lose the first-time buyer relief entirely and pay standard residential rates. At exactly £500,000 you pay £10,000 in stamp duty as a first-time buyer. At £501,000 you pay £15,050 using standard rates, because the relief disappears completely. That cliff edge matters if you are searching in that price range.
If you are buying with a partner, both of you must be first-time buyers to qualify for the relief. If one of you has owned a property before, you pay standard rates on the whole purchase.
How to calculate your stamp duty
Stamp duty is calculated in bands, not as a flat percentage of the whole price. On a £350,000 property as a first-time buyer:
- The first £300,000: 0% = £0
- £300,001 to £350,000 (the remaining £50,000): 5% = £2,500
- Total: £2,500
On a £280,000 property as a first-time buyer, the entire amount falls within the 0% band, so you pay nothing.
Use HMRC's stamp duty calculator to get an exact figure for your property price before you make an offer. Do not rely on estimates.
When do you pay stamp duty?
Your solicitor handles the stamp duty payment on completion day. You need to have the money available then. Your solicitor will request it in the days before completion as part of the completion funds, alongside the remaining purchase price.
You have 14 days from completion to file and pay. Your solicitor does this for you as part of the conveyancing process. You do not deal with HMRC directly.
What counts as a first-time buyer?
You qualify as a first-time buyer if you have never owned a freehold or leasehold residential property anywhere in the world. That includes properties inherited, received as a gift, or owned jointly with someone else. If you have ever had a mortgage on a property, you are not a first-time buyer for SDLT purposes.
It does not matter if you currently own property in another country. It does not matter if the property you owned previously was tiny or abroad or subsequently sold at a loss. If you owned it, you are no longer a first-time buyer.
Module 5 calculates your full buying cost including stamp duty, legal fees, surveys, and moving costs. See your complete number before you start searching.
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