The cost of buying your first home extends beyond the price you pay for the property itself.
One of the biggest potential costs for homebuyers is Stamp Duty Land Tax
Whether you’re a first-time buyer or you’ve been buying and selling properties for years, Stamp Duty can seem complicated. Updated in September 2024, this guide explains everything you need to know about what Stamp Duty is and what you might have to pay.
What is Stamp Duty?
Stamp Duty Land Tax is a government tax levied on buyers when they purchase a property or land in England or Northern Ireland.
Stamp Duty applies to:
- Freehold properties
- Leasehold properties
- Shared Ownership homes
- Land purchases
Do first-time buyers pay Stamp Duty?
If you’re buying a property for the first time, you may not have to pay Stamp Duty.
First-time buyers qualify for Stamp Duty relief, meaning you’ll pay no tax on the first £425,000 of a property’s purchase price, if the overall price doesn’t exceed £625,000.
That means if you’re buying your first property for less than £425,000, you’ll be exempt from it completely.
What if my home costs more than £425,000?
For homes costing up to £625,000, you won’t have to pay stamp duty on the first £425,000, and you’ll then pay Stamp Duty at a 5% rate on the remaining amount (up to £200,000). But if the property you’re buying is worth over £625,000, you will pay the standard rates as you will not qualify for first-time buyer relief.
Related: How much can I afford to borrow?
First-time buyer Stamp Duty rates
| Portion of purchase price | FTB Stamp duty rate |
| £0 – £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| £625,001 + | No relief – normal rates apply |
What are the Stamp Duty rates for existing homeowners?
While first-time buyers can claim Stamp Duty relief on the first £425,000 of a property’s purchase price, those who have purchased a property before can only claim relief on the first £250,000.
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate |
| £0 | £250,000 | 0% |
| £250,000 | £925,000 | 5% |
| £925,000 | £1,500,000 | 10% |
| Over £1.5 million | – | 12% |
Am I classed as a first-time buyer?
To be classed as a first-time buyer and claim first-time buyer relief on Stamp Duty, you must:
- Have never previously purchased a property in the UK or abroad.
- Be buying a property that will be your main residence.
- Have never inherited or been gifted a property.
- Both be classed as first-time buyers if you’re buying with someone else.
Will my mortgage affect my Stamp Duty bill?
The type of mortgage you choose to buy your first home could affect your eligibility for first-time buyer Stamp Duty relief.
Joint mortgages
If you’re taking out a joint mortgage with another person, both of you must be classed as first-time buyers to claim stamp duty relief.
Guarantor mortgages
If your guarantor isn’t named on the title deeds of the property you’re buying, you should be able to claim first-time buyer Stamp Duty relief.
Shared Ownership mortgages
If you’re buying a Shared Ownership property, you can choose to pay full stamp duty up front or just pay on the share you’re buying. If the property’s overall value is less than £625,000, you can claim first-time buyer Stamp Duty relief.
Help to Buy mortgages
You’ll still qualify for relief if you’re buying your first home through a Help to Buy equity loan.
Gifted deposits
If you’ve been gifted a deposit, perhaps from a parent, you’ll still qualify for first-time buyer stamp duty relief if the giftee isn’t named on the property’s title deeds.
How do I pay my Stamp Duty bill?
If you owe stamp duty on your first property purchase, you have 14 days from the date of completion to pay your bill.
However, your solicitor should make this payment on your behalf as part of their service offering, as well as completing the necessary paperwork.
