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Guide to first time buyer stamp duty

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Guide to first time buyer Stamp Duty

The information in this guide relates to properties located within England and Northern Ireland. Schemes differ for properties in Scotland and Wales. NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this webpage is guidance only and does not constitute advice.

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Do first time buyers pay Stamp Duty? Open in new window

Do you qualify as a first time buyer? Open in new window

Do both people need to be first time buyers? Open in new window

Mixed use property rates Open in new window

Stamp Duty for non UK residents Open in new window

How do first time buyers pay Stamp Duty? Open in new window

Stamp Duty for first time buyers

Officially called Stamp Duty Land Tax (SDLT), Stamp Duty applies to most property purchases in England and Northern Ireland. Scotland and Wales have different systems.

Stamp Duty can seem confusing when it’s your first purchase. But there are different rules and Stamp Duty exemptions for first time buyers. Read on to see how it applies and what you need to be aware of.

Do first time buyers pay Stamp Duty?

You’ll only need to pay Stamp Duty if the property value is above a certain amount.

This threshold differs based on where you live and when you buy.

For first time buyers in England and Northern Ireland, the threshold for paying Stamp Duty is much higher due to the government’s relief scheme. As of 1st April 2025, standard Stamp Duty rates apply if the property is worth more than £500,000.

How Stamp Duty changed in 2025?

Stamp Duty thresholds changed on 1st April 2025. From this date, some Stamp Duty thresholds decreased, meaning you’ll now pay more Stamp Duty.

The changes apply to both standard Stamp Duty rates and to the relief rates for first time buyers.

For non first time buyers:

The 0% Stamp Duty threshold reduced from £250,000 to £125,000.

For first time buyers:

The 0% Stamp Duty threshold reduced from £425,000 to £300,000.
Standard Stamp Duty charges now apply to properties worth more than £500,000. This replaces a £625,000 home value limit.

See full details on our dedicated Stamp Duty 2025 changes page.

Stamp Duty rates for first time buyers

Minimum property price	Maximum property price	Stamp Duty rate
£0	£300,000	0%
£300,001	£500,000	5%

For properties purchased over £500,000 the first time buyer discount will not apply. You will pay standard Stamp Duty rates.

You only pay tax on the amount above the threshold. If you were to buy a home for £304,000, as a first time buyer, you’d only pay 5% tax on the £4,000 that falls above the £300,000 threshold.

These rates are in line with Stamp Duty changes from April 1st 2025. To see Stamp Duty rates for previous years, visit the government website.

Find out more about tax rates for first time buyers Open in new window

Which first time buyers will pay Stamp Duty?

Depending on where you live in the UK, you may be more likely to face a Stamp Duty bill from 2025 as a first time buyer.

In August 2024, the UK’s average property price was £293,200, according to the UK Government’s House Price Index. If you buy a property worth this much, you still won’t pay Stamp Duty as a first time buyer.

But in London, the average house is worth £531,000. If you’re buying a home worth this much, you’ll pay 5% Stamp Duty as a first-time buyer.

In some other cities and regions, the average house is worth between £300,001 and £500,000. For first time buyers in these locations, Stamp Duty charges will go up. This might impact buyers in:

England’s South East
England’s South West
The East of England
Certain cities or neighbourhoods elsewhere.

Stamp Duty differences in Scotland and Wales

First time buyers in Scotland will pay no Stamp Duty (known as Land and Buildings Transaction Tax) on property purchases up to £175,000. In Wales, while there’s no equivalent scheme, no one will pay Stamp Duty (known as Land Transaction Tax) on property purchases up to £225,000.

In Scotland, although Land and Buildings Transaction Tax was set to change on 1st April 2025, there was no change to the threshold for first time buyers.

Are you a first time buyer?

You’ll need to meet certain criteria to qualify for Stamp Duty discounts for first time buyers. Relief is only available if:

The home will be your only or main residence
You haven’t previously owned a freehold residential property
You don’t have an existing leasehold interest
You’ve never owned a foreign property or inherited one.

Explore the government guide to first time buyer qualification Open in new window

Do both people need to be first time buyers?

Buying a home with another person can be an effective way to get on the property ladder. But to benefit from the Stamp Duty relief scheme, everyone included in the application needs to be classed as a first time buyer.

Standard Stamp Duty rates will apply if you’re purchasing your first home but the other person isn't.

Stamp Duty if you're not a UK resident

Things are a little different for first time buyers and Stamp Duty if you’re not classed as a UK resident. You’ll need to have been in the UK for 183 days in the 12 months leading up to your purchase.

If you don’t meet this criteria, you’ll generally face a 2% surcharge on your Stamp Duty rate – whether you’re a first time buyer or not.

Government advice on rates for non UK residents Open in new window

Mixed-use property rates for first time buyers

As the name suggests, mixed-use properties aren’t strictly residential or non-residential. This could be a flat above a shop or an apartment joined to a GP’s surgery. Different Stamp Duty rates apply to this property category. As a result, first time buyers can’t qualify for their usual relief.

The thresholds for leasehold properties are slightly different but for freehold sales, the Stamp Duty rates are:

0% for properties up to £150,000
2% for properties between £150,001 and £250,000
5% above £250,000.

Get advice on rates for non-residential and mixed land and property Open in new window

More help for first time buyers

If you think a first time buyer mortgage is right for you and you're looking for information to apply, head over to our first time buyer hub. You can find additional information as well as guidance on how to start your mortgage journey.

First time buyer guide Open in new window

How do first time buyers pay Stamp Duty?

Even if you don’t need to pay Stamp Duty, you’ll still need to file a Stamp Duty return. This is normally handled by the solicitor or conveyancer helping you with the purchase. If you owe anything, first time buyers can make a Stamp Duty payment like anyone else.

The standard process is:

Send a payment to HM Revenue and Customs (HMRC) within 14 days of your completion date.
Use the 11-character transaction reference you’re given.
Choose a payment method that suits you. This can include online payments, bank transfers and cheques.

You could face financial penalties if you file your Stamp Duty late. The following fixed penalties can apply:

£100 – up to three months late
£200 – more than three months late.

First time buyer Stamp Duty: FAQs

Do you pay Stamp Duty if you’re not a first time buyer?

Yes. If you've previously purchased a property, you don't count as a first time buyer. This means you won't be eligible for the Stamp Duty exemption, no matter the property's price. As of 1st April 2025, this applies to properties worth £125,000 or less. In practice, most people who have owned a property before will pay Stamp Duty.

If you’re planning to keep hold of an existing property, but buy another, you may be subject to a second home Stamp Duty surcharge. Learn more about Stamp Duty on second homes.

How much is Stamp Duty on a £400,000 house in the UK?

On a £400,000 house, under Stamp Duty rates as of 1st April 2025, you’ll pay:

£5,000 if you’re a first time buyer.
£10,000 if you’re not a first time buyer.

These figures apply to England and Northern Ireland.

In Scotland and Wales, different rates apply.

How do I calculate my Stamp Duty?

To calculate your Stamp Duty, first find the rates that apply to you. Then work out the percentage for each part of your home’s value.

Below a certain value, you don’t pay any tax. If the property you want to buy is worth more than this, you only pay Stamp Duty on the portion above the threshold. The same applies when you enter a new bracket.

Say you’re buying a house worth £350,000 in June 2025.

The first £125,000 is tax free.
The next £125,000 comes with a 2% Stamp Duty bill.
On the remaining £100,000, you’ll pay 5%.

So your Stamp Duty bill would be £7,500.

If you’re a first time buyer:

The first £300,000 is tax free.
The remaining £50,000 comes with a 5% tax bill.

So your Stamp Duty would be £2,500.

Learn more about paying Stamp Duty.

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