Stamp Duty Land Tax (SDLT) — First-Time Buyer Relief 2026

Stamp Duty Land Tax (SDLT) — First-Time Buyer Relief 2026

Stamp Duty Land Tax (SDLT) hits English and Northern Irish property buyers. First-time buyers get relief — but it’s been narrowed twice in recent budgets. Here’s the 2026 picture.

SDLT Thresholds for First-Time Buyers (England & NI, 2026)

After the 2024–25 changes, the first-time buyer relief thresholds are:

• Up to £300,000: 0%
• £300,001 to £500,000: 5% on the portion above £300k
• Above £500,000: No first-time buyer relief — full standard rates apply on the entire price

SDLT Thresholds for All Other Buyers (Standard Rates)

• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5M: 10%
• Above £1.5M: 12%

Worked Examples

First-time buyer, £280,000 property:

• 0% on £280,000 = £0 SDLT

First-time buyer, £400,000 property:

• 0% on first £300,000
• 5% on £100,000 (£300k–£400k)
• Total SDLT: £5,000

First-time buyer, £510,000 property:

• Above £500k — first-time buyer relief is lost entirely
• Standard rates apply
• 0% on first £125k
• 2% on £125k–£250k = £2,500
• 5% on £250k–£510k = £13,000
• Total SDLT: £15,500

The cliff edge at £500,001 is brutal — a £1 increase in price triggers £10,500 more SDLT.

Why First-Time Buyer Status Matters

To qualify, none of the buyers have ever owned property anywhere in the world. Both members of a couple must qualify. If one has owned before (including inherited), the relief is lost.

You also must intend to live in the property as your main home.

The 5% Supplement for Additional Property

If you already own a property and buy another (buy-to-let, second home), you pay a 5% supplement on the entire price, on top of standard SDLT.

Example: £400,000 BTL purchase, owner already has a main home.

• Standard SDLT: £7,500
• 5% supplement on full £400k: £20,000
• Total: £27,500

This supplement was 3% until 2024, raised to 5% in the autumn 2024 budget — a significant disincentive for casual BTL investors.

Replacing Your Main Home

If you buy a new main home before selling the old one, you initially pay the 5% supplement. But you can reclaim it if you sell the previous main home within 36 months. Refund process via HMRC takes 4–8 weeks typically.

Scotland and Wales Have Different Systems

• Scotland: Land and Buildings Transaction Tax (LBTT), different thresholds
• Wales: Land Transaction Tax (LTT), different thresholds

The above applies only to England and Northern Ireland.

Strategic Notes

• If you’re at £505k for a first-time buyer purchase, negotiating £499k saves you £15,500 in tax — that’s leverage
• For couples where one has owned before: the entire purchase loses first-time buyer status. Sometimes it’s worth buying in the never-owned partner’s name alone (if affordability allows)
• Inherited property counts as ownership for first-time buyer purposes

Bottom Line

For 2026 first-time buyers in England/NI: keep your purchase under £500k to retain relief, and ideally under £300k for zero SDLT. The cliff edge at £500,001 is the biggest single tax penalty in the UK property market.