First-Time Buyer vs Home Mover Stamp Duty UK 2026: How Much Do You Save?
First-time buyers in England and Northern Ireland get a valuable SDLT discount, but it disappears entirely above GBP 500,000. This guide compares first-time buyer relief against the standard rates a home mover pays, using 2026/27 SDLT bands, with worked examples and clear guidance on when each buyer benefits.
TL;DR -- 30-Second Summary
• First-time buyer: 0% to GBP 300,000, 5% from GBP 300,000 to GBP 500,000 (only if price is GBP 500,000 or less)
• Home mover (standard): 0% to GBP 125,000, 2% to GBP 250,000, 5% to GBP 925,000
• Maximum saving: a flat GBP 5,000 across the GBP 300,000 to GBP 500,000 range
• Cliff edge: no first-time buyer relief at all above GBP 500,000
• Neither pays the 5% additional-property surcharge when buying a main home
Side-by-Side Comparison
Feature
First-time buyer
Home mover (standard)
0% band
Up to GBP 300,000
Up to GBP 125,000
Next band
5% from GBP 300,000 to GBP 500,000
2% from GBP 125,000 to GBP 250,000
Main band
Standard rates if over GBP 500,000
5% from GBP 250,000 to GBP 925,000
Price cap on relief
GBP 500,000 (cliff edge)
None
Eligibility
Never owned property; main home
Replacing main residence
Additional 5% surcharge
Not payable when buying your only or main home
Worked Examples by Purchase Price
The table below shows the SDLT a first-time buyer and a home mover each pay at common price points in 2026/27, and the resulting saving. All figures use the slice (banded) method, where each rate applies only to the portion of the price within that band.
Purchase price
First-time buyer SDLT
Home mover SDLT
Saving
GBP 250,000
GBP 0
GBP 2,500
GBP 2,500
GBP 300,000
GBP 0
GBP 5,000
GBP 5,000
GBP 425,000
GBP 6,250
GBP 11,250
GBP 5,000
GBP 500,000
GBP 10,000
GBP 15,000
GBP 5,000
GBP 550,000
GBP 17,500 (no relief)
GBP 17,500
GBP 0
Take the GBP 425,000 example for a first-time buyer: the first GBP 300,000 is taxed at 0%, and GBP 125,000 (the slice from GBP 300,000 to GBP 425,000) is taxed at 5% = GBP 6,250. A home mover pays nothing on the first GBP 125,000, 2% on the GBP 125,000 to GBP 250,000 band (GBP 2,500) and 5% on the GBP 175,000 slice from GBP 250,000 to GBP 425,000 (GBP 8,750), a total of GBP 11,250. The first-time buyer therefore saves GBP 5,000. Across the whole GBP 300,000 to GBP 500,000 range the saving is a flat GBP 5,000, because both buyers pay 5% on the same upper slice and the only difference is the wider 0% band.
When First-Time Buyer Relief Wins
First-time buyer relief is always better than the standard rates for any purchase up to GBP 500,000, because the 0% band is GBP 300,000 instead of GBP 125,000. The benefit grows as the price rises toward GBP 300,000, then holds at a flat GBP 5,000 all the way to GBP 500,000. If you qualify and your purchase is at or below GBP 500,000, you should always claim it.
The relief matters most for buyers purchasing between GBP 300,000 and GBP 500,000, where the saving is a steady GBP 5,000. For lower-priced homes the saving shrinks: at GBP 200,000, both pay relatively little (GBP 0 for a first-time buyer, GBP 1,500 for a home mover), so the relief is helpful but not transformative.
When Standard Home Mover Rates Apply
If you have ever owned residential property, including an inherited share or a property abroad, you are not a first-time buyer and the standard rates apply. The same is true above the GBP 500,000 cap: even a genuine first-time buyer loses the relief entirely on a GBP 500,001 home and is taxed exactly like a home mover.
For buyers near the cap, this creates a strong incentive to negotiate the price below GBP 500,000 where realistic, since crossing the threshold can add over GBP 5,000 in SDLT. Home movers also need to remember the additional 5% surcharge applies if they keep a second property rather than replacing their main residence.
Frequently Asked Questions
Frequently Asked Questions
What is the first-time buyer stamp duty relief in 2026/27?
In England and Northern Ireland, first-time buyers pay 0% SDLT on the first GBP 300,000 and 5% on the portion from GBP 300,000 to GBP 500,000. The relief is only available where the total price does not exceed GBP 500,000. Above that, standard residential rates apply to the whole price.
What are the standard home mover SDLT rates in 2026/27?
Standard residential rates are: 0% to GBP 125,000; 2% to GBP 250,000; 5% to GBP 925,000; 10% to GBP 1.5m; and 12% above GBP 1.5m. These apply to a home mover replacing their main residence where first-time buyer relief does not apply.
Who counts as a first-time buyer for SDLT?
Someone who has never owned a freehold or leasehold residential property anywhere in the world and intends to live in the property as their main home. For joint purchases, all buyers must be first-time buyers. Even an inherited share of property removes first-time buyer status.
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How much can a first-time buyer save versus a home mover?
On GBP 300,000 the saving is GBP 5,000 (GBP 0 vs GBP 5,000). On GBP 500,000 it is also GBP 5,000 (GBP 10,000 vs GBP 15,000). Across the GBP 300,000 to GBP 500,000 range the saving is a flat GBP 5,000. Above GBP 500,000 there is no relief and both buyers pay the same.
Does first-time buyer relief apply above GBP 500,000?
No. If the price exceeds GBP 500,000 the relief is withdrawn entirely and standard rates apply to the whole price. It is a cliff edge, so buyers near the threshold should be careful.
Do home movers pay the additional property surcharge?
A home mover replacing their only or main residence does not pay the 5% additional property surcharge, provided the old main residence is sold in time. The surcharge applies to second homes and buy-to-lets. Non-residents pay a further 2%.
When does staying below GBP 500,000 matter most?
At exactly GBP 500,000 a first-time buyer pays GBP 10,000; at GBP 505,000 they pay GBP 15,250 (no relief). Negotiating below the cap can save several thousand pounds in SDLT on top of the lower price.
Does first-time buyer SDLT relief apply in Scotland and Wales?
No. SDLT applies only in England and Northern Ireland. Scotland uses LBTT (with its own first-time buyer relief) and Wales uses LTT (no first-time buyer relief). Use the relevant devolved rules instead.
Disclaimer: This comparison is for general information based on 2026/27 SDLT rates for England and Northern Ireland. SDLT rules are subject to change and individual circumstances vary. Check gov.uk and consider professional advice before completing a purchase.
