Stamp Duty on a £500,000 House 2026
Quick answer: standard buyer pays £15,000, first-time buyer pays £10,000, second home buyer pays £40,000. £500,000 is the most important price point in the UK stamp duty system because it is the first-time-buyer cliff: above this price the FTB relief is lost entirely.
By buyer type at £500,000
| Buyer type | England + NI (SDLT) | Scotland (LBTT) | Wales (LTT) |
|---|---|---|---|
| Standard buyer | £15,000 | £23,350 | £18,000 |
| First-time buyer | £10,000 | £22,750 | £18,000 |
| Second home / additional property | £40,000 | £63,350 | £42,450 |
| Non-UK resident (standard) | £25,000 | £23,350 | £18,000 |
Scotland's LBTT bands jump to 5% at £250,000 and 10% at £325,000, both lower thresholds than England's, which is why Scotland is materially more expensive at £500,000. Wales LTT sits between the two because of the higher £225,000 nil-rate band.
The £500,000 FTB cliff edge
The most important fact about a £500,000 first-time-buyer purchase is the cliff. At exactly £500,000, a first-time buyer pays £10,000 in SDLT. At £500,001, the FTB pays £15,000 - the same as a standard buyer. A £1 increase in price causes a £5,000 increase in SDLT.
This is because the first-time buyer relief is structured as an all-or-nothing eligibility test against the purchase price, not as a tapered relief. If the property costs £500,000 or less, FTB relief applies. If it costs more than £500,000, FTB relief is lost and the standard band schedule applies to the full price.
Practical implications for buyers near the cliff:
- →Negotiating the headline price below £500,000 saves £5,000 outright. Most buyers near the cliff offer £499,950 or similar.
- →Fixtures and fittings (carpets, white goods, garden furniture) can sometimes be separated from the property price and paid for separately, reducing the SDLT-chargeable consideration. Solicitors will only agree where the apportionment is genuine and reasonable.
- →Above the cliff, FTB status is irrelevant for SDLT. Same SDLT as a standard buyer.
How the £15,000 standard SDLT is built
| Band | Rate | Taxable in this band | Tax due |
|---|---|---|---|
| £0 to £125,000 | 0% | £125,000 | £0 |
| £125,001 to £250,000 | 2% | £125,000 | £2,500 |
| £250,001 to £500,000 | 5% | £250,000 | £12,500 |
| Total | £15,000 | ||
Frequently Asked Questions
How much is stamp duty on a £500,000 house in 2026?
A standard buyer pays £15,000, a first-time buyer pays £10,000, a second-home buyer pays £40,000, and a non-UK-resident standard buyer pays £25,000. £500,000 is the FTB cliff: above this price, FTB relief is lost entirely.
What is the first-time buyer £500,000 cliff?
First-time buyer relief is lost entirely above £500,000. At £500,000 an FTB pays £10,000. At £500,001 an FTB pays £15,000 - a £5,000 jump for £1 of price. This is the largest single cliff in UK stamp duty.
Most buyers near the cliff negotiate the headline price down. Some legitimately apportion fixtures and fittings out of the SDLT-chargeable consideration with their solicitor's agreement.