Stamp Duty For First Time Buyers

What is stamp duty? 

Stamp duty land tax is a cost you must pay if you buy any kind of property or land over a certain price. The stamp duty fee you will need to pay will depend on the price of the property you are buying.  

How Stamp Duty works 

You will need to pay stamp duty if the property you are buying costs over £125,000 for residential properties. Non-residential properties and land have a slightly higher stamp duty threshold of £150,000 

You will need to pay stamp duty if:

  • You purchase a residential property costing over £125,000 and are not a first time buyer
  • When you buy a new or existing leasehold
  • Are transferred land or property in exchange for payment, for example if you take on a mortgage or buy a share in a house

You will need to pay your land tax when the sale of your property purchase is complete. The tax will need to be paid to your solicitor who will then pay HMRC once your property sale is complete.

Stamp Duty and First time buyers  

If you’re buying your first home, stamp duty rules will differ slightly for you due to there being a discount or ‘relief’ for first time buyers. People buying their first home won’t pay any stamp duty on homes costing £300,000 or less. This rule applies if either you or any other person you are buying with is a first time buyer.

First time buyers purchasing a home costing above £500,000 will not be entitled to any discount, you will be required to pay the standard land tax rate.

Stamp duty and shared ownership

Since November 2018, first time buyers purchasing through shared ownership schemes also pay no stamp duty on the first £300,000 of any home costing up to a maximum of £500,000. This means if you’re buying a home costing £300,000 or less through shared ownership and you are a first time buyer, you will not pay any stamp duty. 

If you’re a first time buyer who purchases a property priced between £300,000.01 and £500,000, you will pay 5% (on the portion of your home costing more than £300,000). 

If you are a first time buyer who bought a property costing less than £500,000 after 22nd November 2017 who has paid stamp duty, you may be eligible for a refund. To claim your refund, you will need to contact the Stamp Duty Land Tax Office directly. You can claim a refund up to 4 years after purchasing your shared ownership property. However, to be eligible for a refund, you must have been a first time buyer who bought their property after 22nd November 2017. To find out more about claiming a refund on land tax paid, please visit the HMRC website 

Shared Ownership  

Shared Ownership is an affordable home buying scheme which allows you to purchase a percentage of a property and pay a discounted rental charge on the remaining portion of the property you do not own. Providers of shared ownership homes are usually housing associations. You are likely to be eligible for shared ownership if your household income is £80,000 a year or less. 

The percentage of the property you can buy can vary from anywhere between 25% – 75%, depending on what you can afford.  

If you would like to find out more about Open Door’s shared ownership homes, visit our dedicated Shared Ownership webpage.  

If you’re unsure about what the best home ownership option may be for you, why not try our free and easy to use Eligibility Calculator by clicking here.  

Work out the cost 

Whether you’re a first time buyer or not, working out how much stamp duty you will need to pay can be confusing. If you would like to find out how much stamp duty you will need to pay on any property, try the Money Saving Expert’s Stamp Duty Calculator. 


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Price Range:
Size SQ FT:

1 to 5 bedrooms

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To book a viewing of this property or to find out more details get in touch with a member of our helpful team. You can contact the team by filling in and submitting the below enquiry form. 0333 0044777


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