Stamp Duty with Wayhome

Stamp Duty is a tax paid to the government by the buyer every time a home is bought. It’s worked out based on the home’s value. Usually, first time buyers pay less, or no, Stamp Duty. With Wayhome, it’s different because you’re buying the home in partnership with the funding partners who are treated differently by the government.

Because the funding partners are corporate buyers and not first time buyers, the government charges the partnership at a higher Stamp Duty tax rate.

But you only pay Stamp Duty in proportion to your ownership. For example, if you start with 5% ownership, you only pay 5% of the Stamp Duty upfront.

Stamp Duty is worked out by dividing property prices into bands with each band being charged at a different rate.

Property price tax band	Tax rate for regular buyers	Tax rate for corporate buyers
The first £0 to £125,000	0%	3%
The next £125,001 to £250,000	2%	5%
The next £250,001 to £925,000	5%	8%

Take a look at this example on a £350,000 home bought using Wayhome.

Tax band	Value of home taxed (£350,000 in total)	Tax rate for corporate buyers	Total Stamp Duty	Your initial 5% share
The first £0 to £125,000	£125,000	3%	£3,750	£187.50
The next £125,001 to £250,000	£125,000	5%	£6,250	£312.50
The next £250,001 to £925,000	£100,000	8%	£8,000	£400
-	-	Total	£18,000	£900

Your initial Stamp Duty payment would be £900. The funding partners would pay the remaining £17,100.

How Stamp Duty is worked out depends on your individual circumstances and may be changed by HMRC in the future. We don’t provide tax advice so you should seek independent tax advice from a qualified professional before investing.