Stamp Duty Calculator
Menu
Home
Calculate Now

Stamp Duty on £1,000,000 Property

Calculate stamp duty on a £1 million property

Adjust Your Calculation

Property Details

Results update automatically as you type
£

Enter the full purchase price of the property

Standard rates apply - replacing main residence

Disclaimer: This tool does not constitute financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in government policy, interest rates, or personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Gov UK.

Quick Answer: Stamp Duty on £1,000,000

First-Time Buyer

N/A

Above £625k threshold

Standard Buyer

£43,750

4.38% effective rate

Additional Property

£93,750

Includes 5% surcharge

How Stamp Duty is Calculated on £1,000,000

Stamp duty is calculated using tiered rates. You pay different percentages on different portions of the property price, similar to income tax bands.

Standard Buyer Breakdown

BandRateAmountTax
£0 - £125,0000%£125,000£0
£125,000 - £250,0002%£125,000£2,500
£250,000 - £925,0005%£675,000£33,750
£925,000 - £1,000,00010%£75,000£7,500
Total Stamp Duty£43,750

Additional Property Breakdown

ComponentAmount
Base Stamp Duty£43,750
5% Additional Property Surcharge+£50,000
Total (Additional Property)£93,750

First-Time Buyer Relief

First-Time Buyer Relief Not Available

First-time buyer relief only applies to properties up to £500,000. At £1,000,000, first-time buyers pay the same rates as standard home movers: £43,750.

Tips for Buyers at This Price Point

  • Negotiation tip: Consider negotiating the price down slightly to reduce your stamp duty bill.
  • Budget planning: Factor stamp duty of £43,750 into your total purchase costs alongside legal fees, surveys, and moving costs.
  • Higher rate band: Part of this purchase falls into the 10% stamp duty band (£925,001 - £1.5m).

What Can You Buy for £1,000,000?

A £1 million property purchase puts buyers into the upper echelons of the UK housing market. In London zones 1–2, £1 million covers a two-to-three-bedroom flat in prime areas such as Chelsea, Kensington, Notting Hill, or Hampstead. In London zones 2–4, this budget reaches a three-to-four-bedroom house in areas like Chiswick, Dulwich, Richmond, or Wimbledon. In the Home Counties, £1 million delivers a substantial five-bedroom detached house in premium towns like Cobham, Gerrards Cross, or Harpenden. In the Cotswolds, Devon, and other premium countryside locations, this price accesses a characterful period house or a renovated farmhouse with land. Edinburgh's most prestigious addresses and Bath's Georgian crescents fall within this range. Crucially, at £1 million, the purchase crosses the £925,001 threshold that triggers the 10% SDLT rate on the portion above £925,000, adding an extra layer of tax.

Total Cost of Buying at £1,000,000

At £1 million, stamp duty of £43,750 for a standard buyer is a substantial sum. The calculation crosses into the 10% band: 0% on £125,000, 2% on £125,000, 5% on £675,000, and 10% on £75,000 (the portion from £925,001 to £1,000,000). Additional property buyers face £93,750. A 20–25% deposit (£200,000–£250,000) is common at this price level, and many buyers are cash-rich from previous property equity. Conveyancing at £1 million typically costs £3,000–£5,000 due to increased complexity and higher professional indemnity requirements. A full structural survey (£1,000–£2,000) is strongly recommended. Mortgage affordability at 4.5x income requires a combined household income of around £170,000–£200,000 depending on the deposit. Some high-net-worth lenders offer higher income multiples or portfolio-based lending.

Frequently Asked Questions

How much stamp duty on a £1,000,000 property?

For a £1,000,000 property in England: First-time buyers pay standard rates (no relief above £625k), standard home movers pay £43,750, and additional property buyers pay £93,750 including the 5% surcharge.

Do first-time buyers pay stamp duty on £1,000,000?

Yes, first-time buyers pay standard rates on a £1,000,000 property because it exceeds the £500,000 threshold for first-time buyer relief. They would pay £43,750.

What is the stamp duty on a £1,000,000 second home?

The stamp duty on a £1,000,000 second home is £93,750. This includes the standard SDLT of £43,750 plus a 5% additional property surcharge of £50,000.

What is the effective stamp duty rate on £1,000,000?

For a £1,000,000 property, the effective stamp duty rate is 4.38% for standard buyers and 9.38% for additional property purchases.

How is stamp duty calculated on a £1 million property?

SDLT on a £1 million property is calculated progressively across four bands: 0% on the first £125,000 (£0), 2% on £125,001–£250,000 (£2,500), 5% on £250,001–£925,000 (£33,750), and 10% on £925,001–£1,000,000 (£7,500). The total is £43,750, giving an effective rate of 4.375%. Additional property buyers add the 5% surcharge across all bands, bringing the total to £93,750.

What is the 10% SDLT rate and when does it apply?

The 10% SDLT rate applies to the portion of the purchase price between £925,001 and £1,500,000. On a £1 million property, only £75,000 of the purchase falls within this band, adding £7,500 to the tax bill. The highest 12% rate does not apply until the price exceeds £1,500,000. For additional properties, the equivalent surcharge-inclusive rate is 15% on this band.

Should I consider buying through a limited company at £1 million?

Buying through a limited company at £1 million does not trigger the higher 17% corporate rate (which applies above £500,000 only when a corporate body acquires a dwelling). However, all company purchases of residential property attract the 5% surcharge regardless of whether the company already owns property. Company purchases may benefit from mortgage interest deductibility and other tax planning advantages. Professional tax advice is essential at this price level to compare personal versus corporate purchase structures.

Other Price Points

Related Guides

Note: These calculations are for properties in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT with different rates.

Scotland LBTT Calculator →Wales LTT Calculator →