This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.
Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026
Stamp Duty Land Tax (SDLT) is a tax paid when you buy a residential property in England or Northern Ireland above a certain value. First-time buyers can benefit from relief that reduces or removes this cost up to certain thresholds, which is one reason it's worth understanding how the relief works before you set your overall budget.
The rates, thresholds and rules described here are correct at the time of writing but are set by the Government and reviewed periodically, so always check the current position on GOV.UK before relying on any figure for your own purchase. Scotland and Wales operate separate, similarly structured taxes with their own rules.
Budgeting for stamp duty as a first-time buyer
- Confirm you meet the current definition of a first-time buyer
- Check the current SDLT thresholds and rates on GOV.UK before budgeting
- If buying jointly, check whether all buyers need to qualify as first-time buyers
- Ask your solicitor to confirm the exact amount due before completion
- Remember stamp duty is paid on top of your deposit and other purchase costs
- If buying in Scotland or Wales, check the equivalent devolved tax instead
- Keep an eye on any announced changes if your purchase spans a change of rules
What Stamp Duty Land Tax is
Stamp Duty Land Tax is a tax charged on the purchase of residential property in England and Northern Ireland once the price exceeds a set threshold. It is calculated on a banded basis, similar to income tax, meaning different portions of the price can be taxed at different rates. Your solicitor or conveyancer will usually calculate the exact amount and handle payment as part of the purchase.
How first-time buyer relief works
First-time buyer relief reduces or removes the SDLT due on a residential purchase, provided the buyer (or all buyers, in a joint purchase) meet the Government's definition of a first-time buyer and the property's value falls within the relief's limits. Broadly, the relief structure involves a threshold below which no tax is due, a further band above that taxed at a reduced rate, and a maximum property value above which the relief does not apply.
The specific thresholds and rates for first-time buyer relief are set by the Government and are correct at the time of writing — they are reviewed and can change. Always check GOV.UK for the current figures before budgeting for a purchase.
Who qualifies as a first-time buyer
The Government's definition generally requires that you have never owned a residential property, anywhere in the world, either alone or with someone else — including inherited or gifted property. If you are buying with another person, most guidance requires that all buyers meet this definition for the relief to apply to the purchase.
If your situation is not straightforward — for example, previous joint ownership, overseas property, or property held in trust — check the detailed GOV.UK guidance or ask your conveyancer, as this area has specific rules.
Scotland and Wales: different taxes, different rules
| Nation | Tax | Where to check current rules |
|---|---|---|
| England & Northern Ireland | Stamp Duty Land Tax (SDLT) | GOV.UK |
| Scotland | Land and Buildings Transaction Tax (LBTT) | Revenue Scotland |
| Wales | Land Transaction Tax (LTT) | Welsh Revenue Authority |
Each nation sets its own thresholds, rates and first-time buyer provisions — do not assume SDLT figures apply if you are buying in Scotland or Wales.
When and how stamp duty is paid
Stamp duty is generally due within 14 days of completing your purchase, and it is standard practice for your solicitor or conveyancer to calculate the amount, submit the return, and arrange payment as part of the conveyancing process, usually drawing the funds from you shortly before or at completion.
Because it is paid separately from your mortgage, it needs to be budgeted for alongside your deposit, valuation and legal fees — not assumed to be covered by your mortgage advance.
Why the figures can change — and why this guide won't quote them
Stamp duty thresholds, rates and reliefs are set by Government policy and have changed more than once in recent years, sometimes with relatively short notice. Because of this, this guide deliberately does not quote specific thresholds or percentages — any figures given here would risk being out of date by the time you read them. The only reliable approach is to check GOV.UK directly, or ask your conveyancer or advisor, for the position that applies on the date of your purchase.
Frequently asked questions
Do first-time buyers pay stamp duty?
First-time buyers in England and Northern Ireland can benefit from first-time buyer relief, which means no Stamp Duty Land Tax is due up to a certain property value, with a reduced rate applying above that up to a further threshold. These thresholds and rates are set by the Government and can change, so always check the current figures on GOV.UK before relying on them, as they are correct at the time of writing.
What counts as a first-time buyer for stamp duty purposes?
Broadly, a first-time buyer is someone who has never owned a residential property anywhere in the world, either alone or jointly with someone else. If you are buying jointly, all buyers usually need to qualify as first-time buyers for the relief to apply — check the current GOV.UK guidance for the exact conditions.
Is stamp duty the same across the UK?
No. Stamp Duty Land Tax applies in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax, and Wales has Land Transaction Tax. Each has its own rates, bands and first-time buyer rules, so the figures are not interchangeable — check the relevant devolved government's guidance if you are buying in Scotland or Wales.
How much stamp duty relief can first-time buyers get?
The relief works by setting a threshold below which no stamp duty is due, and a further band above that taxed at a reduced rate, up to a maximum property value beyond which the relief no longer applies at all. The specific thresholds and rates are set by the Government, are subject to change, and should be checked on GOV.UK at the time of your purchase.
What happens if the property is above the relief's maximum value?
If a property's value exceeds the maximum threshold for first-time buyer relief, the relief may not apply at all, and standard rates could be due on the full amount. This maximum threshold is one of the figures that changes from time to time, so check the current position before assuming relief will apply to a higher-value purchase.
When is stamp duty paid?
Stamp Duty Land Tax is generally due within 14 days of completion, and your solicitor or conveyancer will usually handle the calculation and submission on your behalf as part of the purchase process. Confirm with them exactly what is included in their fee and when payment is required.
Can I claim first-time buyer relief if I inherited a property?
Generally, if you have ever owned or part-owned a residential property, including one that was inherited or received as a gift, you are unlikely to qualify as a first-time buyer for relief purposes. This is a detailed area of the rules, so check the current guidance or ask your conveyancer if your situation is not straightforward.
Does stamp duty relief affect my mortgage application?
Stamp duty is a tax paid on completion and is separate from your mortgage, but you'll need to budget for it alongside your deposit and other purchase costs, as it is not something you can typically borrow through your mortgage. Factor it into your overall affordability planning early on.
Sources and further reading
- GOV.UK — Stamp Duty Land Tax
- GOV.UK — Stamp Duty Land Tax relief for first-time buyers
- Revenue Scotland — Land and Buildings Transaction Tax
- Welsh Revenue Authority — Land Transaction Tax
Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.
Related pages
How much deposit do you need?
Budget your deposit alongside stamp duty and other purchase costs.
Read moreHow much can I borrow?
Understand your overall budget before factoring in stamp duty.
Read moreFirst-time buyer mortgage checklist
The wider list of documents and costs to prepare for.
Read moreAgreement in principle explained
A key early step once your budget, including tax costs, is clear.
Read moreResidential mortgages
Whole-of-market advice for first-time buyers.
Read moreAsk about your total purchase costs
Speak to an advisor about budgeting for your purchase.
Read moreTalk it through with an advisor
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