UK Stamp Duty Explained: How First-Time Buyers Can Pay £0

Buying your first home in the UK is a massive milestone, but the extra fees can be overwhelming. The largest of these is usually Stamp Duty Land Tax (SDLT). Fortunately, the UK government offers huge concessions to help first-time buyers get onto the property ladder.

What is Stamp Duty?

Stamp Duty is a tax paid to the government when you buy property or land over a certain price in England and Northern Ireland. (Scotland and Wales have their own equivalent taxes). The amount you pay depends on the purchase price of the property and whether you are a first-time buyer, moving home, or buying an additional property.

The First-Time Buyer Exemption

As of 2026, the rules heavily favor first-time buyers. If you and anyone else you are buying with are first-time buyers, you can claim a massive discount.

  • If the property price is £425,000 or less, you pay absolutely £0 in Stamp Duty.
  • If the property price is between £425,001 and £625,000, you pay 5% Stamp Duty, but only on the portion above £425,000.
  • If the property price is over £625,000, you lose the first-time buyer privilege entirely and must pay the standard rates on the full purchase price.

What Counts as a First-Time Buyer?

The rules are strict. To qualify, you must have never owned a residential property anywhere in the world. If you inherited a house in Spain ten years ago and sold it, you are not a first-time buyer. Furthermore, if you are buying a house with a partner and they have previously owned property, you lose the exemption entirely, even if you are a first-time buyer.

To see exactly how much you will owe, and to calculate your exact First-Time Buyer relief, use our UK Stamp Duty Calculator.