At £350,000, a first home falls just over the first-time buyer relief threshold, so only a thin slice of the price attracts any Stamp Duty at all.
The Scenario
- Property purchase price: £350,000
- First-time buyer: Yes
- Additional property: No
- Rate bands applied: first-time buyer relief (0% to £300,000, then 5%)
The figure above is calculated by the UK Stamp Duty Calculator using its actual rate bands, so the tax owed and the effective rate are the real output for this purchase price.
What This Means
The £2,500 bill is 5% of the £50,000 that sits above the £300,000 relief threshold. Spread across the whole purchase, that is an effective rate of well under 1%. The relief is generous but it has a hard edge: at £500,001 it vanishes completely, and the same buyer would suddenly owe standard rates on the full price. If you are buying close to that line, the Stamp Duty jump can outweigh a small increase in the agreed price.
Try Your Own Numbers
Change the price, or switch off first-time buyer status to see the standard bill, in the UK Stamp Duty Calculator. Once you know the upfront tax, the Mortgage Calculator helps you work the deposit and monthly repayment around it, and the UK ISA Calculator is useful if you are still building the deposit.