The UK government’s stamp duty holiday (or rather, threshold adjustments) came into effect in April 2026. If you’re buying a home — especially as a first-time buyer — the changes could save you thousands. Here’s the breakdown.
What Changed
From April 2026, the stamp duty land tax (SDLT) thresholds were adjusted:
| Buyer Type | Previous Nil-Rate Band | New Nil-Rate Band |
|---|---|---|
| First-time buyers | Up to £425,000 | Up to £500,000 |
| Home movers | Up to £250,000 | Up to £300,000 |
| Additional homes | No change | +3% surcharge remains |
First-Time Buyers: The Big Win
First-time buyers now pay zero stamp duty on properties up to £500,000. For a £450,000 home, that’s a saving of up to £10,000 compared to the previous rules.
- 0% on the first £500,000
- 5% on the portion from £500,001 to £625,000
- Above £625,000, standard rates apply
Home Movers: Moderate Relief
If you’re moving up the ladder, the nil-rate band increase from £250,000 to £300,000 means:
- £0 on the first £300,000
- £2,500 saved on a £400,000 purchase vs previous rules
- Standard rates (5%–12%) apply above that
Additional Properties
The 3% surcharge on second homes and buy-to-let properties remains unchanged. No relief there.
Should You Rush to Buy?
The threshold changes are permanent, not temporary. There’s no urgency to complete before a deadline. That said:
- If you’re already looking and the new thresholds help, go ahead
- Don’t buy a worse property just to save on stamp duty
- Factor in mortgage rates, which remain elevated
Regional Differences
Scotland and Wales have separate land transaction taxes. The changes above apply to England and Northern Ireland only.
- Scotland (LBTT): First-time buyer relief up to £175,000
- Wales (LTT): Separate thresholds; check the Welsh Revenue Authority website
How to Claim
Your solicitor or conveyancer will handle the SDLT return. The relief is applied automatically — you don’t need to file anything extra.
The Fine Print
- You must intend to live in the property as your main home
- Joint buyers: if one person is a first-time buyer and the other isn’t, you may not qualify for full relief
- Properties over £625,000 don’t qualify for first-time buyer relief at all
Bottom Line
The 2026 stamp duty changes put more money in buyers’ pockets. First-time buyers benefit most. If you’re in the market for a home under £500,000, this is a good time to buy — but don’t let the tax tail wag the property dog.
What matters most for buyers in 2026
The biggest practical change is for first-time buyers: zero stamp duty on properties up to £500,000 is a meaningful saving — up to £10,000 compared to the previous rules. For home movers, the increased nil-rate band from £250,000 to £300,000 delivers a more modest but still welcome benefit of around £2,500 on a typical purchase. Because these changes are permanent, there is no deadline-driven urgency to rush into a property decision — if you were already planning to buy, the new thresholds make the timing slightly more favourable, but buying a property solely to capture a stamp duty saving is almost always the wrong approach. The 3% surcharge on second homes and buy-to-let investments remains unchanged, so investors and second-home buyers see no benefit from the 2026 adjustments.
Where buyers typically make mistakes
The most common error is buying purely to capture a stamp duty saving — a property is the largest purchase most people make, and tax should never be the primary driver of that decision. Mortgage rates, location, long-term suitability, and the total cost of ownership all matter more than a one-off tax benefit. Another frequent mistake is assuming the relief applies to both buyers in a joint purchase when only one qualifies as a first-time buyer: HMRC’s rules can result in the standard rates applying to the entire purchase. Buyers in Scotland and Wales often mistakenly assume the England and Northern Ireland thresholds apply to them, which can lead to incorrect budget calculations. Finally, forgetting the 3% surcharge on second properties is a costly oversight — if you are buying a buy-to-let or a holiday home, the additional tax remains a significant chunk of the purchase price.
Common questions about stamp duty in 2026
Q: Does the stamp duty change apply to Scotland and Wales? A: No. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), each with different thresholds and rules. The 2026 changes apply only to England and Northern Ireland.
Q: What happens if one buyer in a joint purchase is a first-time buyer and the other is not? A: You may not qualify for the full first-time buyer relief. HMRC treats joint purchases based on the status of both parties, so if one person has previously owned property, the higher standard rates may apply to the whole purchase.
Q: Do I need to do anything extra to claim the relief? A: No. Your solicitor or conveyancer files the SDLT return and applies the relief automatically. You do not need to submit a separate application or form.
Q: Are properties over £500,000 still eligible for first-time buyer relief? A: First-time buyer relief applies to properties up to £500,000 with 0% on that portion. Between £500,001 and £625,000, a 5% rate applies on that slice. Properties above £625,000 do not qualify for first-time buyer relief at all and standard rates apply.
Further reading and useful references
The official HMRC stamp duty land tax guidance provides the definitive breakdown of rates, thresholds, and relief eligibility for England and Northern Ireland. The Scottish Government’s LBTT page and the Welsh Revenue Authority’s LTT site are the authoritative sources for buyers in those jurisdictions. The government’s “Check if you can get help to buy a home” tool can confirm whether you qualify as a first-time buyer under the current rules. For a broader view of property purchase costs, our personal finance section covers mortgage comparison, survey options, and the full range of fees associated with buying a home in the UK.
Building a property purchase plan that lasts
The stamp duty changes make buying slightly more affordable, but a successful property purchase depends on getting the fundamentals right: a mortgage you can comfortably afford, a deposit that does not leave you house-poor, and a property that suits your life for at least five to seven years. Set a clear budget that includes all the costs beyond the purchase price — solicitor fees typically run £1,000–£2,000, surveys another £400–£700, and moving costs vary widely. Check your credit score well before applying for a mortgage, as any issues take months to resolve. Review your spending and build an emergency fund of at least three months’ expenses before committing to a mortgage, because the first year of home ownership typically throws up unexpected costs. The families who thrive as homeowners are the ones who planned for the full picture, not just the stamp duty saving.
Practical steps before you make an offer
Check whether you qualify as a first-time buyer by confirming that neither you nor any joint buyer has previously owned a residential property anywhere. Get a mortgage agreement in principle before viewing properties — this tells you exactly what you can afford and makes you a more credible buyer. Use an online SDLT calculator to work out your exact tax bill based on the purchase price and your buyer status, so there are no surprises at completion. If you are eligible for first-time buyer relief, ensure your solicitor applies it on the SDLT return — in practice this happens automatically, but it is worth confirming. For properties above £625,000, remember that first-time buyer relief does not apply at all and standard rates of 5%–12% kick in, so budget accordingly.