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Stamp duty on a £500,000 house is £3,750 for first-time buyers or £15,000 for home movers.
Stamp Duty Summary
| Buyer Type | Stamp Duty | Effective Rate |
|---|---|---|
| First-time buyer | £3,750 | 0.75% |
| Home mover | £15,000 | 3.0% |
| Second home/BTL | £27,000 | 5.4% |
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 - £500,000 | 5% | £250,000 | £12,500 |
| Total | £15,000 |
First-Time Buyers
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £425,000 | 0% | £425,000 | £0 |
| £425,001 - £500,000 | 5% | £75,000 | £3,750 |
| Total | £3,750 |
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 - £500,000 | 8% | £250,000 | £20,000 |
| Total | £30,000 |
Total Purchase Costs at £500K
| Cost | First-Time Buyer | Home Mover |
|---|---|---|
| House price | £500,000 | £500,000 |
| Deposit (10%) | £50,000 | £50,000 |
| Stamp duty | £3,750 | £15,000 |
| Solicitor | £2,400 | £2,400 |
| Survey | £800 | £800 |
| Total upfront | £56,950 | £68,200 |
FTB Relief Limit Explained
At £500,000, you’re £125,000 above the full FTB relief threshold:
| Property Price | FTB Stamp Duty | FTB Saving vs Home Mover |
|---|---|---|
| £425,000 | £0 | £8,750 |
| £450,000 | £1,250 | £9,500 |
| £500,000 | £3,750 | £11,250 |
| £550,000 | £6,250 | £12,500 |
| £625,000 | £10,000 | £13,750 |
| Over £625,000 | No relief | £0 |
Note: FTB relief only applies on properties up to £625,000 total.
Should You Buy at £499,999?
| Price | FTB Stamp Duty | Difference |
|---|---|---|
| £500,000 | £3,750 | — |
| £499,999 | £3,750 | £0.05 saved |
No significant difference — the threshold isn’t at £500K.
Impact on Monthly Budget
Adding stamp duty to your mortgage costs more long-term:
| Stamp Duty | Added to Mortgage | Interest (5%, 25yr) | True Cost |
|---|---|---|---|
| £3,750 | £3,750 | £2,823 | £6,573 |
| £15,000 | £15,000 | £11,295 | £26,295 |
Pay stamp duty upfront if possible to avoid extra interest.
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