Stamp Duty

Stamp Duty on a £500,000 Property

A worked breakdown of Stamp Duty Land Tax on a £500,000 property purchase in England or Northern Ireland, covering the standard rate, first-time buyer relief, and the higher rates that can apply to a second home or additional property.

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Standard Stamp Duty on £500,000

At the standard residential rates, a £500,000 property is charged as follows.

Band	Rate	Tax due
Up to £125,000	0%	£0.00
£125,001 to £250,000	2%	£2,500.00
£250,001 to £925,000	5%	£12,500.00

Total Stamp Duty due: £15,000.00, an effective rate of 3%.

First-time buyer relief on £500,000

A £500,000 property sits right at the upper price limit for first-time buyer relief, so relief still applies here, though some tax is due above £300,000.

Band	Rate	Tax due
Up to £300,000	0%	£0.00
£300,001 to £500,000	5%	£10,000.00

Total Stamp Duty due as a first-time buyer: £10,000.00, an effective rate of 2%. A single pound above this price would remove relief entirely, so check the exact agreed price if it is close to this threshold.

Buying a second home or additional property at £500,000

If buying a £500,000 property means you will own more than one residential property, the higher rates can apply instead.

Band	Rate	Tax due
Up to £125,000	5%	£6,250.00
£125,001 to £250,000	7%	£8,750.00
£250,001 to £925,000	10%	£25,000.00

Total Stamp Duty due at the higher rates: £40,000.00, an effective rate of 8%.

How this is calculated

Stamp Duty Land Tax is charged in bands, so only the portion of the price within each band is taxed at that band's rate. The higher rates for a second home or additional property do not apply to a purchase worth less than £40,000.00.

These figures cover England and Northern Ireland. Scotland and Wales have their own property transaction taxes with different rates and thresholds.

Frequently asked questions

How much Stamp Duty is due on a £500,000 property?

At the standard rate, £15,000, an effective rate of 3%. This assumes you are not a first-time buyer and are not buying an additional property.

Can a first-time buyer get relief on a £500,000 property?

Yes. £500,000 is the upper price limit for first-time buyer relief, so relief still applies at this price. An estimated £10,000 is due, an effective rate of 2%, since relief covers the first £300,000 and the remaining £200,000 is taxed at 5%.

What happens if a first-time buyer purchase is just over £500,000?

Relief is lost entirely once the price goes above £500,000, and the purchase reverts to standard rates on the full price. It is worth checking the exact agreed price if it is close to this threshold.

How much Stamp Duty is due on a £500,000 second home or additional property?

An estimated £40,000, an effective rate of 8%, assuming the higher rates apply.

When do the higher rates not apply to a £500,000 property?

The higher rates do not apply if you are replacing your main residence and sell your previous main residence within the relevant time limit, or if the property is your only residential property at completion.

Is this Stamp Duty figure exact for my purchase?

This is an estimate based on the price alone. For a figure that reflects your specific circumstances, including any reliefs or exceptions, use the full Stamp Duty Calculator.

Last reviewed

Reviewed 17 August 2026

This is an estimate for general guidance only and is not financial or legal advice. It does not determine eligibility for any relief, exception or refund. Use the full Stamp Duty Calculator for your own figures.