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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.Â
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.Â
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 2022 budget.
Or see our Guides, Calculators or Taxopedia
Now you know how Stamp Duty is calculated in the UK, you can learn more! (And who doesn’t love extra tax knowledge, right?) These are the most read articles if you’re learning more about UK property tax and what you might owe. Selling a property too? Try our Capital Gains Tax calculator.
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