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Stamp duty on a £750,000 house is £27,500 for all standard buyers (first-time buyer relief doesn’t apply).
Stamp Duty Summary
| Buyer Type | Stamp Duty | Effective Rate |
|---|---|---|
| First-time buyer | £27,500 | 3.67% |
| Home mover | £27,500 | 3.67% |
| Second home/BTL | £50,000 | 6.67% |
Note: First-time buyer relief is not available on properties over £625,000.
How Stamp Duty is Calculated
Standard Rates (All Regular Buyers)
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £125,000 | 0% | £125,000 | £0 |
| £125,001 - £250,000 | 2% | £125,000 | £2,500 |
| £250,001 - £750,000 | 5% | £500,000 | £25,000 |
| Total | £27,500 |
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 - £750,000 | 8% | £500,000 | £40,000 |
| Total | £50,000 |
Total Purchase Costs at £750K
| Cost | Standard Buyer | Second Home |
|---|---|---|
| House price | £750,000 | £750,000 |
| Deposit (15%) | £112,500 | £112,500 |
| Stamp duty | £27,500 | £50,000 |
| Solicitor | £3,000 | £3,000 |
| Survey | £1,200 | £1,200 |
| Total upfront | £144,200 | £166,700 |
Why No FTB Relief at £750K?
First-time buyer stamp duty relief has these limits:
- 0% rate: On first £425,000
- 5% rate: On £425,001 - £625,000
- No relief: On properties over £625,000
At £750K, you lose all FTB relief and pay standard rates.
The £625K FTB Cliff Edge
| Property Price | FTB Stamp Duty | Standard Rate | FTB Penalty |
|---|---|---|---|
| £600,000 | £8,750 | £20,000 | Save £11,250 |
| £625,000 | £10,000 | £21,250 | Save £11,250 |
| £626,000 | £21,300 | £21,300 | £0 saved |
| £750,000 | £27,500 | £27,500 | £0 saved |
Consider staying under £625K if you’re a first-time buyer.
Stamp Duty Payment Options
At £27,500, you might consider:
| Option | Pros | Cons |
|---|---|---|
| Pay upfront | No interest, clean mortgage | Large cash outlay |
| Add to mortgage | Preserves savings | Costs £20,700 more in interest (25yr, 5%) |
| Bridging (temporary) | Short-term solution | High interest rates |
Income Required for £750K Purchase
| Deposit | Mortgage | Income (4.5x) |
|---|---|---|
| 10% (£75K) | £675,000 | £150,000 |
| 15% (£112.5K) | £637,500 | £141,667 |
| 20% (£150K) | £600,000 | £133,333 |
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