Do first time buyers pay stamp duty? A simple breakdown before buying your first home

Stamp Duty is a cost that can catch first time buyers off guard, especially when they’re already focused on saving for a deposit and securing your first home.

So the question is, do first time buyers pay Stamp Duty, or are first time buyers exempt from Stamp Duty?

The short answer is yes, sometimes they do. The good news is that there are stamp duty relief initiatives for first time buyers. 

In this guide, we break down the cost of stamp duty for first time buyers, how the rules work, and what counts as a first time buyer in the eyes of HMRC.

Do first time buyers have to pay stamp duty when buying a home? 

Yes, first time buyers can pay stamp duty, but they usually benefit from first time buyer relief.

• Stamp duty first time buyer relief: From 1st April 2025, no stamp duty is payable on homes up to £300,000. On properties between £300,001 and £500,000, first time buyers pay 5% on the portion above £300,000.

If the property costs more than £500,000, first time buyer relief doesn’t apply.

Here’s what this Stamp Duty exemption for first time buyers means in real terms:

• A £280,000 home – £0 stamp duty.
• A £400,000 home – £5,000 stamp duty (5% on £100,000 above £300,000).
• A £550,000 home – No relief, standard rates apply to the full amount.

Side note: These stamp duty thresholds for first time buyers apply in England and Northern Ireland. Scotland and Wales use different property taxes called Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT). This article focuses on the English system.

What counts as a first time buyer for Stamp Duty? 

A first time buyer is someone who has never owned a residential property before, anywhere in the world.

Here are some of the situations that can affect whether you qualify for first time buyer relief:

• Joint purchases. Both buyers must be first time buyers. If one person has owned property before, neither can claim the relief.
• Inherited property. If you inherit a property, you are considered to have owned property before, even if you’ve never lived in it.
• Property abroad. Owning a home overseas still counts as property ownership for Stamp Duty purposes.

So when people ask, “Who is a first time buyer for Stamp Duty?”, the answer is simple: no previous ownership, anywhere.

Does Stamp Duty apply to new build homes for first time buyers?

Yes, Stamp Duty applies to new build homes in exactly the same way as any other residential property purchase.

The main difference is timing. With new builds, Stamp Duty is usually due at exchange of contracts rather than completion. Why? Because Stamp Duty is payable once the purchase becomes legally binding. For new build homes, this typically happens at exchange of contracts. 

Alongside this promotion, Genesis Homes offers a range of schemes designed to help buyers move, including our Early Bird Scheme, Help to Move, Part Exchange and Key Worker incentives.

FAQs about first time buyer stamp duty

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) (also known as stamp duty) is the tax paid when you buy a property or piece of land in England and Northern Ireland above certain price thresholds.

The amount you pay depends on several factors, including:

• The property’s purchase price
• Whether it’ll be your main home
• If you qualify for any reliefs, such as first time buyer relief

Here’s a quick overview of the current SLDT rates:

What Stamp Duty rules changed for first time buyers in April 2025?

The nil-rate threshold dropped from £425,000 to £300,000 and the maximum property price dropped from £625,000 to £500,000. 

The changes mainly affect buyers in higher price brackets, while lower-priced homes still benefit from full relief.

Here’s a deeper breakdown of the changes to Stamp Duty in April 2025. 

The amount of Stamp Duty you pay as a first time buyer varies depending on the value of your property.

Let’s use an example to demonstrate. 

Most buyers looking at new build developments from Genesis Homes will sit within the £275,000–£450,000 range (where first time buyer relief offers meaningful savings).

Here’s a breakdown of how much Stamp Duty new homeowners will pay with these house prices:

You can also use the Stamp Duty first time buyer (SDLT) calculator* to estimate the cost based on your purchase price.

*The figures in this article are accurate at the time of publishing, but always check the Stamp Duty Land Tax calculator for your exact purchase price (or speak to an independent financial adviser before making a decision).

Make your first move with confidence with Genesis Homes

When you understand where the Stamp Duty thresholds sit, it’s less daunting. Many first time buyers pay nothing at all, while others pay a reduced amount depending on the purchase price. 

If you’re ready to take the next step, a new build home with Genesis Homes could be the right fit. With stylish, energy-efficient homes, getting onto the ladder and into a beautiful new build home feels more achievable. 

Explore our latest new build homes.