The deposit size itself, be it 5% or otherwise, doesn’t have direct tax implications. However, if this is a second property, you’ll be subject to an additional 3% Stamp Duty Land Tax (SDLT) on top of the standard rates. If you’re buying a home in Scotland or Wales, the tax rules differ with the Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively. Always consult with a tax advisor or solicitor to understand any potential tax obligations.