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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 £425,000 of your purchase.
You pay 5% Stamp Duty on amount up to £625,000. For you, this is £3,750.
Your Stamp Duty Land Tax total is £3,750.
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👇
Property Price | Stamp duty rate |
Up to £250,000 | 0% |
£250,001 – £925,000 | 5% |
£925,000 – £1.5 million | 10% |
£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 £425,000 – and on properties up to £625,000, you pay a reduced rate (5%). Read more about Stamp Duty on our blog. Or if you’re selling a house, check out our Capital Gains Tax calculator.
Or see our Guides, Calculators or Taxopedia
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