Do I qualify as a first-time buyer for stamp duty purposes?

You qualify if you have never owned a residential property, anywhere in the world. If you're buying jointly, all buyers must be first-time buyers to access the relief. If one buyer has previously owned property, standard rates apply to the whole purchase.

When do I pay stamp duty?

SDLT is due within 14 days of completion. Your solicitor will calculate the amount, submit the SDLT return to HMRC, and pay on your behalf using funds from the completion statement. You don't need to do anything separately.

Do I pay stamp duty on a new build?

Yes, the same rules apply to new builds. First-time buyers pay 0% on the first £425,000. Note that some developers advertise 'we'll pay your stamp duty' — this is usually a marketing incentive and the benefit is often priced into the purchase price.

What if I'm buying with a partner who has owned before?

If one of you has previously owned a residential property, neither of you gets first-time buyer stamp duty relief. The standard residential rates apply. However, if your partner is joining a property you already own rather than buying a new property together, different rules may apply.

What happens if I accidentally claim the wrong relief?

HMRC can investigate SDLT claims for up to 4 years from the filing date. If an incorrect claim is found, you'll owe the full SDLT plus interest and potentially a penalty. Your solicitor is responsible for calculating and claiming the correct relief — make sure they have accurate information about your ownership history.

Stamp Duty for First-Time Buyers 2026 | Dom

Stamp Duty Land Tax (SDLT) is a tax on the purchase of property in England. Most first-time buyers in Manchester pay nothing — and here's exactly why and how.

First-time buyer SDLT rates (2026)

| Purchase price | SDLT rate | |---|---| | Up to £425,000 | 0% | | £425,001–£625,000 | 5% on the amount above £425,000 | | Over £625,000 | Standard rates, no FTB relief |

Examples

Buying a £200,000 flat: £0 stamp duty.

Buying a £250,000 terrace: £0 stamp duty.

Buying a £500,000 house: 5% × (£500,000 – £425,000) = 5% × £75,000 = £3,750.

Buying a £650,000 house: No first-time buyer relief. Standard rates apply: 0% on first £250,000, 5% on next £400,000 = £20,000.

Who qualifies as a first-time buyer?

To claim first-time buyer relief, you must:

Have never owned a residential property anywhere in the world, whether outright or with a mortgage, whether in the UK or overseas
Be buying to live in the property — not as an investment or buy-to-let
All buyers must qualify — if you're buying jointly, every person on the title must be a first-time buyer

Inherited property counts as ownership. If you inherited a share of your parents' home before selling it, you've previously owned. Speak to your solicitor if there's any uncertainty — it's better to clarify before completion than to face an HMRC inquiry after.

Shared ownership and SDLT

If you're buying through shared ownership, you have two options:

1. Pay SDLT on your share only — you pay SDLT on the value of the share you're buying. If it's under £425,000, you pay nothing.

2. Pay SDLT on the full market value upfront — this uses up your SDLT allowance for the whole property now, meaning you pay nothing further when you staircase (buy additional shares). This can be beneficial if you plan to staircase quickly.

Your solicitor will advise which approach is better given your specific circumstances.

When and how SDLT is paid

SDLT must be filed and paid within 14 days of completion. Your solicitor handles this automatically:

They calculate the SDLT due based on the purchase price and your eligibility
They include it in the completion statement (the financial summary of the transaction)
On or after completion day, they submit the SDLT return to HMRC and pay using funds from the transaction

You don't need to interact with HMRC directly. Just make sure you've told your solicitor accurately whether you qualify as a first-time buyer.

SDLT and new builds: the developer incentive trap

Some new-build developers advertise "stamp duty paid" or "we'll cover your stamp duty." This sounds attractive, but it's usually a marketing approach rather than a genuine saving.

When a developer pays your stamp duty, that benefit is typically already factored into the asking price. You're not saving money — you're paying a slightly inflated purchase price to get a benefit that offsets the tax you would have paid anyway.

Compare: what is the comparable price per square foot for a similar new-build or second-hand property nearby? If the developer's price is already at the top of the range, the stamp duty incentive is less valuable than it appears.

This guide is information only. Dom does not provide financial, mortgage or legal advice. Always consult a qualified adviser for decisions specific to your circumstances.

Stamp Duty for First-Time Buyers