Stamp duty explained Stamp duty for first-time buyers

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The stamp duty you'll pay is tiered, like income tax

First-time buyers have to pay the same stamp duty rates as everybody else - and, as of 4 December 2014, that amount is tiered, like income tax.

In simple terms, you won't pay any stamp duty on the first £125,000. You’ll then pay 2% on the portion up to £250,000, and 5% on the portion up to £925,000. Between that point and £1.5 million, it’s 10% - then 12% on anything over £1.5 million.

You can see the new stamp duty rates in the table below.

Go further: The Which? Group offers an independent mortgage advice service, Which? Mortgage Advisers, that looks at thousands of mortgages to find the best deal for your personal circumstances. The advisers are also able to explain how stamp duty works and what it will mean for you.

New stamp duty rates

Stamp duty rates
Purchase price of property% paid on the part of the property price within each tax band
£0-£125,0000%
£125,001-£250,0002%
£250,001-£925,0005%
£925,001-£1,500,00010%
£1,500,001+12%

Go further: check out our main page on stamp duty rates to find out more, including whether stamp duty applies to fixtures and fittings.

Stamp duty calculator

Find out how much stamp duty you'll pay using our stamp duty calculator.

Or, if you want to understand a bit more about how the breakdown works, here's an example:

  • Property price: £275,000
  • Portion 1: £0-£125,000 - 0% tax, so total paid for this chunk of the purchase price = £125,000
  • Portion 2: £125,000.01-£250,000 - 2% tax (£2,500) + £125,000 = £127,500
  • Portion 3: £250,000.01-£275,000 - 5% tax (£1,250) + £25,000 = £26,250
  • Total paid: £278,750 (£3,750 of which is stamp duty)

Go further: first-time buyer guide - everything you need to know before buying your first property

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