Stamp duty rates have changed over the past few years but one thing that remains the same is that you have to pay quite a bit of money in stamp duty when you purchase a 1 million pound house.
The amount that you pay is calculated in tranches based on the purchase price and needs to be paid within a few weeks of completing the property purchase. The tranches start at £250,000 – the figure at which stamp duty first becomes payable.
Main Residence
If the property that you are buying is your main residence then the amount that you would have to pay for a 1 million pound property is £41,250 which is quite a chunk of cash. For properties in London you won’t get a great deal for £1 million in some areas so you will need to factor this large stamp duty payment into your calculations.
Second or Other Property
If the property that you are buying is not your primary residence then you will need to pay an extra 3% on top of the standard rate shown above – so that would be an extra £30,000 on top of the £41,250 for a main residence, giving a total of £71,250.
If you would like to check out how much stamp duty you need to pay for other property prices then check out the stamp duty calculator which has figures for both main residence purchases and second property purchases.