Stamp duty for first-time buyers

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Stamp duty for first-time home buyers

Buying your first home can be an exciting step. When you’re looking for a property though, you may want to bear in mind that the costs aren’t limited to the price of buying the place. There are other costs and fees that you’ll need to consider. Knowing what these are can help you to budget for your home purchase.

One of these costs is Stamp Duty Land Tax (SDLT), which is a tax on your property or land in England and Northern Ireland. How much you’ll have to pay depends on a number of factors, like the price of your home, and whether you’re a first-time buyer.

Who qualifies as a first-time buyer?

You’re a first-time home buyer if this is the first property that you’re buying to live in. If you need more help and information for buying your first home, you can find resources here. The article points you in the direction of some of the things that first-time home buyers need to know, including first home checklists. There’s also information for first-time home buyers in the Equifax Homebuyer’s Handbook, which also explains the budgeting and mortgage process for anyone buying a home.

Are first-time home buyers exempt from paying Stamp Duty?

First-time buyers get a relief on stamp duty, on properties up to a certain value.

As of 23 September 2022, the government announced changes to the stamp duty threshold for first time buyers. First time buyers will not pay stamp duty on up to £425,000 of the property price. Previously, this threshold was set as £300,000.


You’re a first time buyer and purchase a property for £500,000. Your stamp duty will be calculated as follows:

  • 0% on the first £425,000
  • 5% on the remaining £75,000 = £3,750
  • total SDLT = £3,750

If you’re planning on applying for a mortgage to buy your first home, you may want to check your Equifax Credit Report & Score beforehand. Free for the first 30 days then £14.95 monthly, the credit report shows you your borrowing history, while the score gives you an indication of how creditworthy a lender may find you.

This article was updated on 03 November 2022; all information was correct at the time of writing.

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