First-Time Buyer Stamp Duty Calculator UK 2025/26

Reviewed by Mustafa Bilgic
UK Calculator Editor · Updated May 2026

Who qualifies as a first-time buyer for SDLT relief

HMRC defines a first-time buyer for SDLT purposes as an individual who has never owned (or been a beneficiary of a major interest in) a residential dwelling anywhere in the world, and who intends the purchased property as their main residence. The test is at the moment of completion.

Both buyers in a joint purchase must qualify. If either has previously owned a residential property — including via inheritance or as a trust beneficiary — the relief is unavailable for the whole transaction. This catches many couples where one partner has owned before, even decades earlier.

The £625,000 cliff edge

FTB relief is structured to give 0% on the first £425,000 and 5% on the next £200,000 (£425,001–£625,000). Crucially, relief disappears entirely above £625,000 — the buyer reverts to standard rates on the whole price.

On £625,000 the FTB pays 5% × £200k = £10,000. On £626,000 the FTB pays standard rates: 0% on £250k + 5% on £376k = £18,800 — an £8,800 jump for a £1,000 increase. Many first-time buyers in London and the South East negotiate hard to land just below the threshold.

FTB at £325,000

Below £425k zero-rate. SDLT = £0. Standard non-FTB rate: 5% × £75k = £3,750. Saving: £3,750.

FTB at £500,000

Above £425k. 5% × £75,000 = £3,750. Standard non-FTB: 5% × £250k = £12,500. Saving: £8,750.

FTB just over the cliff at £640,000

Relief lost. Standard: 5% × £390,000 = £19,500. FTB pays the same as a non-FTB. Saving: £0. Negotiating to £625,000 saves £9,500.

Common mistakes to avoid

• Forgetting that inherited property anywhere in the world disqualifies the buyer.
• Joint purchase with a partner who has previously owned: no relief, even if the FTB will live there.
• Buying as 'tenants in common' with a parent — the parent's prior ownership disqualifies relief.
• Letting a property you bought via your sole company doesn't help — the company-owned property still counts against the individual's FTB status under HMRC anti-avoidance.
• Making an offer at £626k when £625k saves £8,800.

When to use this calculator

FTBs should run this calculator at offer stage and when negotiating. Couples where only one is a true FTB should consider whether to buy in the FTB partner's name only (subject to mortgage availability).

How this differs in Scotland, Wales and Northern Ireland

England and NI use the £425k/£625k FTB scheme. Scotland's LBTT first-time buyer relief gives a higher zero-rate threshold of £175,000 (raising the standard £145k threshold). Wales has no specific FTB relief — standard LTT bands apply with the main £225,000 threshold available to all buyers.

When this calculator is and isn't the right tool

The First-Time Buyer Stamp Duty Calculator UK 2025/26 above is built for the most common UK 2025/26 scenarios in this tax area. It will be the right tool when your situation maps cleanly onto the inputs — single property or simple aggregation, standard HMRC rates and bands, and individual taxpayer (rather than complex trust or partnership structures). It is informational and does not replace tailored advice from a chartered tax adviser, especially for transactions above £500,000, cross-border situations, or where reliefs interact with each other. For year-end filings, always reconcile with HMRC's own free calculators on gov.uk before pressing submit on Self Assessment.

Closely related calculators

• UK SDLT Rates 2026 — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Residential SDLT 2025/26 — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Property Purchase Cost — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Mortgage Stamp Duty — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Mortgage and Stamp Duty — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.

Glossary of UK property tax terms

SDLT

Stamp Duty Land Tax — the UK government tax on residential property purchases in England and Northern Ireland.

HRAD

Higher Rates for Additional Dwellings — the formal name for the 5% surcharge on second homes and BTL purchases.

SDLT1

The HMRC return form filed within 14 days of completion to declare and pay SDLT.

Sliced bands

SDLT is charged on slices of the price within each band, not on the whole price at the highest band.

Effective rate

Total SDLT divided by the purchase price, expressed as a percentage.

Tax planning checklist

1. Confirm the figures input above match your actual position — purchase contract, mortgage offer or completion statement.
2. Cross-check the year (2025/26) — figures change every April. The tax year 2026/27 starts 6 April 2026.
3. Use HMRC's official calculator at gov.uk for the final filing figure; this calculator is informational.
4. Keep records for at least 6 years — HMRC's normal enquiry window. 21 years for fraud investigations.
5. Discuss any unusual transaction (joint purchase, gift, divorce settlement, trust) with a qualified tax adviser.
6. Submit your return online via Government Gateway — paper deadlines are earlier and penalties harsher.