Stamp Duty in 2026: What's Changed and What First-Time Buyers Actually Pay

If you've been researching your first home purchase and found conflicting stamp duty figures online, you're not imagining things. The rules changed — again — on 1 April 2025, and a lot of older articles still show the previous, more generous thresholds. This guide gives you the accurate, current picture so you know exactly what you're budgeting for.

What Is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax you pay to HMRC when you buy a property or land in England or Northern Ireland above a certain price. It is not a flat rate on the whole purchase price — it works in bands, a bit like income tax. You only pay each rate on the portion of the price that falls within that band.

If you're buying in Scotland, the equivalent tax is Land and Buildings Transaction Tax (LBTT). In Wales, it's Land Transaction Tax (LTT). Bonsai Law handles conveyancing in England, so this article focuses on SDLT.

What Changed on 1 April 2025?

From September 2022 to March 2025, the Government ran a temporary SDLT relief — both for standard buyers and first-time buyers — that kept more money in purchasers' pockets. Those reliefs expired on 31 March 2025, and from 1 April 2025 the thresholds reverted to their previous levels:

• For standard buyers (not first-time buyers): the nil-rate band (the amount on which you pay 0%) dropped from £250,000 back to £125,000.
• For first-time buyers: the nil-rate threshold dropped from £425,000 back to £300,000, and the maximum price at which first-time buyer relief applies dropped from £625,000 back to £500,000.

If you were working off information from 2023 or 2024, your mental budget may now be out of date. It's worth revisiting the numbers.

The Current SDLT Rates (from 1 April 2025)

Standard residential rates (single main home, not an additional property):

• Up to £125,000 — 0%
• £125,001 to £250,000 — 2%
• £250,001 to £925,000 — 5%
• £925,001 to £1,500,000 — 10%
• Above £1,500,000 — 12%

First-time buyer relief:

• Up to £300,000 — 0% (no SDLT at all)
• £300,001 to £500,000 — 0% on the first £300,000; 5% on the portion above £300,000
• Over £500,000 — no relief; standard rates apply to the whole price

To qualify for first-time buyer relief, all buyers on the purchase must be first-time buyers (if you're buying jointly, your co-buyer cannot have owned a property before either), and you must intend to use the property as your only or main residence.

Worked Examples

Example 1: Buying at £350,000

You're a first-time buyer, within the relief window.

• 0% on the first £300,000 = £0
• 5% on the next £50,000 = £2,500
• Total SDLT: £2,500

A non-first-time buyer would pay £7,500 on the same property — so as a first-time buyer you save £5,000.

Example 2: Buying at £450,000

Still within the relief window.

• 0% on the first £300,000 = £0
• 5% on the next £150,000 = £7,500
• Total SDLT: £7,500

A standard buyer would pay £10,000 — the relief saves you £2,500.

Example 3: Buying at £550,000 — relief is lost entirely

At £550,000 the price exceeds £500,000, so no first-time buyer relief applies at all. You pay standard rates on the whole price:

• 0% on first £125,000 = £0
• 2% on next £125,000 = £2,500
• 5% on remaining £300,000 = £15,000
• Total SDLT: £17,500

At £499,999 you'd pay just £10,000. A price of £1 over £500,000 costs you an extra £7,500 in stamp duty. If you're negotiating close to that threshold, it is very much worth knowing about.

What About Additional Properties?

If you're buying a second home or a buy-to-let — anything that means you'll own more than one residential property — a 5% surcharge applies on top of the standard rates (rising in bands to 17% above £1.5m). There are limited reliefs if you're replacing a main residence, but the rules are nuanced. If this applies to you, take specific advice before you exchange contracts.

When Is SDLT Paid?

SDLT must be filed with HMRC and the tax paid within 14 days of completion. Your conveyancing solicitor handles this for you — they collect the funds before completion and submit the return on your behalf.

How Bonsai Law Can Help

Calculating your stamp duty liability — especially if you're buying jointly, have previously owned abroad, or are navigating the £500,000 relief cliff edge — is one of the first things we'll go through with you. Our residential team will make sure you know your exact SDLT figure before you commit, so there are no surprises on completion day.

Figures reflect the rates in force from 1 April 2025. Always confirm your exact liability with your solicitor before exchange.