Is there stamp duty on new build properties?

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Answer

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  Even the Stamp Duty relief on Disadvantaged Areas has been withdrawn.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

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