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Is there stamp duty on new build properties?

  1. Sally from Boston
  2. 24 March 2014
  3. Legal 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.

reallymoving comment: 

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  Even the Stamp Duty relief on Disadvantaged Areas has been withdrawn.

As of November 2017, first time buyers are exempt from Stamp Duty payments on properties up to £300,000, and will get a discount on properties up to £500,000.

Taylor & Emmet LLP

Taylor & Emmet LLP

Taylor & Emmet LLP

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Comments (1)

  • Doug Haywood

    posted on 20 Dec 2017

    To buy a new build smaller house will we have to pay stamp duty?

    Reallymoving response

    Hi Doug,
    Stamp Duty is payable on new build homes, unless it expressly says it is paid for you. The Stamp Duty you pay will be dependent on the value of the property. You can have a look at our list of Stamp Duty Costs.
    If you are a first time buyer and the property is under £300,000, you will not have to pay Stamp Duty, and if it is below £500,000 there will be nothing to pay on the first £300,000.
    Best of luck,

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