Don’t risk HMRC fines.
The Stamp Duty you pay is calculated based on the price of the property you’re buying.
In your case, £500,000.
As you’re a first-time buyer, you don’t pay Stamp Duty Land Tax on the first £300,000 of your purchase.
You pay 5% Stamp Duty on amount up to £500,000. For you, this is £10,000.
Your Stamp Duty Land Tax total is £10,000.
Stamp Duty Land Tax is a tax we pay on property purchases. For a long time, it was calculated at 1% of properties over £60,000. But this was changed in 1997 to 1.5% on properties over £250,000 and 2% of properties over £500,000. In 2014, the system was overhauled totally, leaving us with the system we use now.
Today, Stamp Duty is much more pricey and can add a large sum onto the cost of buying property. Here are the current rates👇. You pay these cumulatively, so if you buy a £1 million home, you’ll pay 2%, 5% and 10% on each respective portion of the property cost:
|Property Price||Stamp duty rate|
|Up to £125,000||0%|
|£125,001 – £250,000||2%|
|£250,001 – £925,000||5%|
|£925,000 – £1.5 million||10%|
|Over £1.5 million||12%|
Our calculator is very easy to use. Just let us know your situation – are you a buy to let landlord, buying your first home etc.? – and then let us know how much your property is worth. We’ll calculate what you owe in Stamp Duty tax. Simple.
If you’re either a first-time buyer or a non-UK resident, the rates will be a little different from the above table. Non-residents pay a little extra, first-time buyers pay a little less. Expand the calculations to see the breakdown of your calculation.
In short, no. You can’t deduct Stamp Duty as an expense.
As a first-time buyer, you don’t pay Stamp Duty at the same rate as those already on the property ladder. This helps more people get into the market, despite rising prices. As a first-time buyer, you don’t pay Stamp Duty on properties less than £300,000 – and on properties up to £500,000, you pay a reduced rate. Read more about Stamp Duty on our blog. Or if you’re selling a house, check out our Capital Gains Tax calculator.
Where do we begin? Let’s just say, it’s seen a few changes over the last few years. As a result of COVID with the Stamp Duty holidays plus the up-and-downness of the 2022/23 tax year (four chancellors, three prime ministers and numerous mini and maxi financial budgets), the rates and allowances have changed more than once. Take a look at our blog on the most recent budget of 2022. See the up-to-date rates and planned changes.
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