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Stamp duty tax on a £600000 house

Stamp-duty-tax-on-a-£600k-house

Stamp Duty Land Tax is payable when you purchase a property above a certain value in England, Northern Ireland and Wales. All UK regions impose a 3% surcharge for additional properties such as second homes or buy to let.

A significant change came in April 2016 which saw the introduction of a 3% surcharge on additional home purchases. This was design to cool the buy-to-let market by applying a higher stamp duty tax on those buying investment properties or an additional property.

HMRC stamp duty was abolished for the first time buyers on properties up to £300,000. First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000 but will pay the normal rates of stamp duty on the price above that, saving £1,660‎ on the average first-time buyer property.

If you are a first-time buyer and you are purchasing a property for more than £500,000, then you will not be entitled to the discounted rates.

How much is stamp duty tax for a £600000 property?

Let’s take as an example a property with a value of 600k. The property falls in £300,001 – £925,000 tax band with a 5% tax rate for the first time buyer, and 8% tax rate for the second home. In the first case, we will have to pay a £20,000.00 and in the second case, we will have to pay £38,000.00 in fees.

Tax Band
First time buyer rate
Standard rate
Buy-to-let/
Second home rate

£0 – £125,000

£0 – £125k

0%0%3%

£125,000 – £250,000

£125k – £250k

2%2%5%

£250,000 – £300,000

£250k – £300k

5%5%8%

£300,001 – £925,000

£300k – £925k

5%5%8%

Total stamp duty tax

Total stamp duty tax

£20,000£20,000£38,000

 

For other examples, you can use this Stamp Duty Tax Calculator:

Stamp Duty Tax Calculator

Calculate

Results

Stamp duty to pay
Effective rate
Tax Band
%
Taxable Sum
Tax

£0 – £125,000

£0 – £125k

£125,000 – £250,000

£125k – £250k

£250,000 – £300,000

£250k – £300k

£300,000 – £925,000

£300k – £925k

£925,000 – £1,500,000

£925k – £1.5m

£1,500,000+

£1.5mill+

You may have often heard about SSTC in the property world and wondered what it means. Read our article SSTC meaning and find out what signifies.

Love Your Postcode Estate Agents in Birmingham gives your home maximum exposure online & offline, getting it more views from potential applicants, therefore more offers, and ultimately the highest possible finishing value. This means you end up with more money in your pocket and you enjoy a higher quality service. Call us on 0800 862 0870 or book a free valuation today.

Stamp duty tax on a £600000 house
By lucian