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Stamp duty on a £300,000 house is £0 for first-time buyers or £5,000 for home movers.
Stamp Duty Summary
| Buyer Type | Stamp Duty | Effective Rate |
|---|---|---|
| First-time buyer | £0 | 0% |
| Home mover | £5,000 | 1.67% |
| Second home/BTL | £14,000 | 4.67% |
How Stamp Duty is Calculated
Home Movers (Standard Rates)
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £125,000 | 0% | £125,000 | £0 |
| £125,001 - £250,000 | 2% | £125,000 | £2,500 |
| £250,001 - £300,000 | 5% | £50,000 | £2,500 |
| Total | £5,000 |
First-Time Buyers
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £425,000 | 0% | £300,000 | £0 |
| Total | £0 |
Second Home / Buy-to-Let (3% Surcharge)
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £125,000 | 3% | £125,000 | £3,750 |
| £125,001 - £250,000 | 5% | £125,000 | £6,250 |
| £250,001 - £300,000 | 8% | £50,000 | £4,000 |
| Total | £14,000 |
Total Purchase Costs at £300K
| Cost | First-Time Buyer | Home Mover |
|---|---|---|
| House price | £300,000 | £300,000 |
| Deposit (10%) | £30,000 | £30,000 |
| Stamp duty | £0 | £5,000 |
| Solicitor | £1,700 | £1,700 |
| Survey | £500 | £500 |
| Total upfront | £32,200 | £37,200 |
FTB Savings at £300K
First-time buyers save £5,000 compared to home movers at this price point.
| Comparison | FTB | Home Mover | Difference |
|---|---|---|---|
| Stamp duty | £0 | £5,000 | £5,000 saved |
| Effective rate | 0% | 1.67% | 1.67% saved |
When to Pay Stamp Duty
- Due: Within 14 days of completion
- Who pays: Usually handled by your solicitor
- Payment method: Electronic transfer to HMRC
- Late payment: Interest and penalties apply
Can You Add Stamp Duty to Your Mortgage?
Some lenders allow you to add stamp duty to your mortgage, but:
- Increases your loan amount
- You’ll pay interest on the stamp duty for 25+ years
- Better to pay upfront if possible
Example: Adding £5,000 stamp duty to mortgage at 5% over 25 years costs £8,773 total.
Related Guides
Sources
- HM Revenue & Customs. “Income Tax Rates and Personal Allowances.” gov.uk/income-tax-rates
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