Is there stamp duty on new build properties?
Sally from Boston
Conveyancing questions and answers
I’m a first time buyer interested in buying a newly built property. The property is on the market for £200,000, and I’ve been told by a friend that, because it is a new build, I don’t have to pay the stamp duty cost on it. Is there any truth in this? Thank you.
I’m afraid that your friend has misled you with information that is incorrect. There is currently no exemption on stamp duty for new build properties or first time buyers. However, you should look into what incentives are being offered by the builders as sometimes what happens is they give you an incentive to purchase one of their properties that could be that they would pay the stamp duty tax for you. This may be what your friend had seen advertised or experienced themselves.
Stamp duty on a purchase price of £200,000.00 is 2% on £75,000 of the purchase price = £1,500.00.
If the developers are giving this sort of incentive and you are having a mortgage, be sure to advise your mortgage lenders at the application stage as your Conveyancer will need to know and it may affect the loan amount.
Hi Sally, If you want to have more information on Stamp Duty, and how the changes in December 2014 affect how much stamp duty you pay, then head over to our guide 'Stamp Duty Explained'. Even the Stamp Duty relief on Disadvantaged Areas has been withdrawn.
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Hannah, 09 April 2017