Stamp Duty Land Tax (SDLT) is a tax you pay when buying property in the UK, with rates varying based on factors like property value, whether you're a first-time buyer, or if it's a second home. Here’s a detailed breakdown of how much stamp duty you'll pay on a £300,000 property under current 2024 rates.
Stamp duty rates in England and Northern Ireland are based on property price bands. The rates differ for first-time buyers, home movers, and those purchasing additional properties.
| Portion of Property Value | Stamp Duty Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 - £925,000 | 5% |
| £925,001 - £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Calculation for a £300,000 Property:
First-time buyers benefit from a higher stamp duty threshold to help them get on the property ladder:
| Portion of Property Value | Stamp Duty Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 - £625,000 | 5% |
Calculation for a £300,000 Property (First-Time Buyer):
If you’re purchasing a second home or buy-to-let property, you’ll pay an extra 3% surcharge on top of the standard rates:
| Portion of Property Value | Stamp Duty Rate (Including Surcharge) |
|---|---|
| Up to £250,000 | 3% |
| £250,001 - £925,000 | 8% |
| £925,001 - £1,500,000 | 13% |
| Over £1,500,000 | 15% |
Calculation for a £300,000 Property (Second Home):
Scotland has a different tax known as Land and Buildings Transaction Tax (LBTT).
| Portion of Property Value | LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| £325,001 - £750,000 | 10% |
| Over £750,000 | 12% |
Calculation for a £300,000 Property in Scotland:
In Wales, property purchases are subject to Land Transaction Tax (LTT).
| Portion of Property Value | LTT Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 - £400,000 | 6% |
| £400,001 - £750,000 | 7.5% |
| £750,001 - £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Calculation for a £300,000 Property in Wales:
| Buyer Type / Location | Stamp Duty / Tax |
|---|---|
| First-Time Buyer (England/N. Ireland) | £0 |
| Home Mover (England/N. Ireland) | £2,500 |
| Second Home (England/N. Ireland) | £11,500 |
| Scotland (LBTT) | £4,600 |
| Wales (LTT) | £4,500 |
1. What if I’m buying with someone else and only one of us is a first-time buyer?
If any buyer is not a first-time buyer, you won’t qualify for first-time buyer relief.
2. Do I pay stamp duty if I’m purchasing a shared ownership property?
Yes, stamp duty is still applicable on shared ownership properties, but you can choose to pay it in stages or upfront.
3. Can I avoid stamp duty by buying through a company?
Purchasing through a limited company doesn’t exempt you from stamp duty. In fact, companies may incur a higher surcharge.
4. Is there any relief for stamp duty on buy-to-let properties?
No, buy-to-let purchases are subject to the additional 3% surcharge on top of the standard rates.
5. Do I pay stamp duty if I’m transferring property due to a divorce or inheritance?
Stamp duty is not usually payable on transfers due to divorce or inheritance, but it may apply if there’s a payment involved.
Understanding how much stamp duty you'll pay on a £300,000 property depends on whether you are a first-time buyer, home mover, or purchasing an additional property. For personalized advice on stamp duty, property purchases, and maximizing your investment, contact Fraser Bond today.
