Stamp duty on a £1,000,000 house is £41,250 for standard buyers or £71,250 for second homes.
Stamp Duty Summary
| Buyer Type | Stamp Duty | Effective Rate |
|---|---|---|
| Standard buyer | £41,250 | 4.125% |
| Second home/BTL | £71,250 | 7.125% |
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 - £925,000 | 5% | £675,000 | £33,750 |
| £925,001 - £1,000,000 | 10% | £75,000 | £7,500 |
| Total | £43,750 |
Wait - let me recalculate. £925,001+ is 10%, and £1.5M+ is 12%.
| Band | Rate | Taxable Amount | Tax |
|---|---|---|---|
| £0 - £125,000 | 0% | £125,000 | £0 |
| £125,001 - £250,000 | 2% | £125,000 | £2,500 |
| £250,001 - £925,000 | 5% | £675,000 | £33,750 |
| £925,001 - £1,000,000 | 10% | £75,000 | £7,500 |
| Total | £43,750 |
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 - £925,000 | 8% | £675,000 | £54,000 |
| £925,001 - £1,000,000 | 13% | £75,000 | £9,750 |
| Total | £73,750 |
Total Purchase Costs at £1M
| Cost | Standard Buyer | Second Home |
|---|---|---|
| House price | £1,000,000 | £1,000,000 |
| Deposit (20%) | £200,000 | £200,000 |
| Stamp duty | £43,750 | £73,750 |
| Solicitor | £4,000 | £4,000 |
| Survey | £1,500 | £1,500 |
| Total upfront | £249,250 | £279,250 |
Stamp Duty Comparison by Price
| Property Price | Standard Duty | Effective Rate |
|---|---|---|
| £500,000 | £15,000 | 3.0% |
| £750,000 | £27,500 | 3.67% |
| £1,000,000 | £43,750 | 4.375% |
| £1,250,000 | £68,750 | 5.5% |
| £1,500,000 | £93,750 | 6.25% |
| £2,000,000 | £153,750 | 7.69% |
Income and Deposit Requirements
| Deposit % | Amount | Mortgage | Income (4.5x) |
|---|---|---|---|
| 15% | £150,000 | £850,000 | £188,889 |
| 20% | £200,000 | £800,000 | £177,778 |
| 25% | £250,000 | £750,000 | £166,667 |
| 30% | £300,000 | £700,000 | £155,556 |
High-Value Property Considerations
At £1M, additional factors apply:
Annual Tax on Enveloped Dwellings (ATED)
If owned by a company:
- Properties £500K-£1M: £4,400/year
- Properties £1M-£2M: £9,000/year
Professional Mortgages
High earners may access 5-5.5x income multiples:
- Doctor/Consultant: Up to 5.5x
- Lawyer/Partner: Up to 5.5x
- Senior Executive: Up to 5x
Tax Planning
Consider:
- Joint ownership structures
- Timing of purchase (end of tax year)
- Principal Private Residence relief planning
Payment Strategy
| Payment Method | Amount Due | True Cost (with interest) |
|---|---|---|
| Cash payment | £43,750 | £43,750 |
| Add to mortgage (5%, 25yr) | £43,750 | £76,650 |
Adding stamp duty to your mortgage costs £32,900 extra in interest.
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