Do You Pay Stamp Duty on a New Build? UK Buyer Guide

Buying a brand-new property does not create a general stamp duty exemption. The tax position is based on factors such as where the property is located, the purchase price, whether you are a first-time buyer and whether you already own another home.

The phrase "stamp duty" is also used loosely across the UK. Stamp Duty Land Tax applies in England and Northern Ireland, Wales uses Land Transaction Tax and Scotland uses Land and Buildings Transaction Tax.

This guide reflects the main residential rates in force on 10 September 2026 and is intended as general buyer information, not personal tax or legal advice. Property tax rules can change, so check the official calculator and ask your conveyancer to confirm the amount for your transaction before you commit.

Do you pay stamp duty on a new build?

Yes, the normal property transaction tax rules can apply when you buy a new build. There is no blanket relief simply because the home has never been occupied.

The amount can still be zero in some cases because the purchase falls within a nil-rate band or because you qualify for a relief, but that is different from a new-build-specific exemption.

Which property tax applies where you buy?

• England: Stamp Duty Land Tax (SDLT).

• Northern Ireland: Stamp Duty Land Tax (SDLT).

• Wales: Land Transaction Tax (LTT).

• Scotland: Land and Buildings Transaction Tax (LBTT).

If you are comparing developments on opposite sides of a national border, do not assume the tax bill will be the same for homes with the same purchase price.

Stamp Duty Land Tax on a new build in England and Northern Ireland

For a single residential property under the standard SDLT rates currently shown by HMRC, the tax is charged in bands rather than applying one percentage to the whole purchase price.

• Up to £125,000: 0%.

• £125,001 to £250,000: 2% on that portion.

• £250,001 to £925,000: 5% on that portion.

• £925,001 to £1.5 million: 10% on that portion.

• Above £1.5 million: 12% on that portion.

For example, a standard-rate purchase at £300,000 produces £2,500 on the portion from £125,001 to £250,000 and £2,500 on the final £50,000, giving £5,000 of SDLT before considering any relief or special rule.

Check the current bands and HMRC calculator on the official GOV.UK residential SDLT rates page.

First-time buyer stamp duty on a new build

A qualifying first-time buyer in England or Northern Ireland can currently claim First-Time Buyers' Relief when the property costs no more than £500,000 and the other conditions are met.

• 0% on the first £300,000.

• 5% on the portion from £300,001 to £500,000.

• If the purchase price is above £500,000, the relief is not available and the normal rates apply to the transaction.

A qualifying first-time buyer purchasing at exactly £300,000 would therefore pay no SDLT under the current relief, while a qualifying purchase at £400,000 would produce £5,000 on the £100,000 above the £300,000 relief threshold.

The fact that the property is new does not create the relief; your first-time buyer status and the transaction conditions do.

What if you already own another property?

Higher rates can apply when the new build is an additional residential property. HMRC currently states that buyers who own another residential property will usually pay an extra 5 percentage points on top of the standard residential SDLT rates, subject to the detailed rules and exceptions.

This area can become more complicated when you are replacing a main residence, buying jointly with someone who owns another home or purchasing before your previous property has sold. Get the position confirmed before assuming which rate applies.

Land Transaction Tax on a new build in Wales

Wales uses Land Transaction Tax rather than SDLT. The main residential rates currently published by the Welsh Revenue Authority are:

• Up to and including £225,000: 0%.

• Over £225,000 to £400,000: 6% on that portion.

• Over £400,000 to £750,000: 7.5% on that portion.

• Over £750,000 to £1.5 million: 10% on that portion.

• Above £1.5 million: 12% on that portion.

A £300,000 main-rate purchase in Wales would therefore have £75,000 falling into the 6% band, producing £4,500 of LTT.

Wales does not currently have a separate first-time buyers' relief. The Welsh Government states that the ordinary 0% band applies according to the transaction rather than the buyer receiving a special first-time-buyer threshold.

Check the current figures using the Welsh Government LTT rates and bands.

Land and Buildings Transaction Tax on a new build in Scotland

Scotland uses Land and Buildings Transaction Tax. The current standard residential bands published by Revenue Scotland are:

• Up to £145,000: 0%.

• £145,001 to £250,000: 2% on that portion.

• £250,001 to £325,000: 5% on that portion.

• £325,001 to £750,000: 10% on that portion.

• Above £750,000: 12% on that portion.

At £300,000, the standard LBTT calculation is £2,100 on the £105,000 between £145,000 and £250,000 plus £2,500 on the next £50,000, producing £4,600 before any relief or supplement.

Qualifying Scottish first-time buyers can currently have the nil-rate threshold increased to £175,000, which can reduce LBTT by up to £600. Revenue Scotland explains the conditions on its first-time buyer relief page.

Does a developer stamp duty contribution make the tax disappear?

No. A developer may offer to contribute towards your property tax bill as an incentive, but the tax remains part of the transaction and must still be calculated and dealt with correctly.

Treat a "stamp duty paid" promotion as an incentive with a value, not as a change to the tax law. Your lender and conveyancer should know about incentives connected with the purchase.

Our new build incentives guide explains why financial contributions and upgrade packages should be assessed as part of the whole deal.

Can you negotiate enough to reduce the stamp duty?

Potentially, because property transaction taxes are calculated from the chargeable consideration and thresholds can make the final agreed price important. But do not structure or describe a transaction artificially to reduce tax.

If a developer agrees a genuine lower purchase price, your conveyancer can explain the tax consequences. If the deal contains incentives, extras or unusual arrangements, make sure they are disclosed and treated correctly.

Read can you negotiate the price of a new build? before comparing a discount with an incentive package.

Stamp duty on shared ownership new builds

Shared ownership has additional SDLT rules in England and Northern Ireland. HMRC says buyers using an approved shared ownership scheme can generally choose between making a market value election, where SDLT is calculated using the full market value at the outset, or paying SDLT in stages under the rules.

If you choose staged payment, further SDLT may become relevant when staircasing takes your ownership above 80%. First-time buyer relief can also interact with shared ownership where the conditions are met.

This is an area where individual calculations matter, so use the official GOV.UK shared ownership SDLT guidance and your conveyancer rather than relying on a generic example.

When should you budget for property tax on an off-plan new build?

Budget for it before reservation, even if completion is many months away. A tax rate can change between reservation and legal completion, and your completion date may move.

If you are buying off plan, avoid using every available pound for the deposit, upgrades and reservation costs while treating tax as something to solve later.

Our off-plan buyer checklist and new build completion delays guide explain why timing matters.

Other costs to add to your new build budget

• Mortgage deposit and lender fees.

• Conveyancing and searches.

• Property transaction tax.

• Survey or snagging inspection costs.

• Upgrades and flooring not included as standard.

• Moving costs.

• Buildings and contents insurance.

• Council tax or domestic rates.

• Estate management or service charges.

• Initial utility and broadband costs.

• A contingency for post-completion purchases and maintenance.

For recurring costs after completion, read our new build council tax guide and service charges and estate management fees guide.

New build stamp duty checklist

• Confirm which UK property tax applies to the location.

• Check the current rates close to exchange and completion.

• Confirm whether you qualify for first-time buyer relief.

• Tell your adviser if you or a joint buyer owns another property.

• Disclose developer incentives to your lender and conveyancer.

• Ask how shared ownership changes the calculation if relevant.

• Use an official calculator rather than an old online example.

• Keep enough cash available for the tax and other completion costs.

The bottom line

You can pay stamp duty or its devolved equivalent when buying a new build. The home being brand new does not create a general exemption.

England and Northern Ireland use SDLT, Wales uses LTT and Scotland uses LBTT, with different thresholds and reliefs. First-time buyers in England, Northern Ireland and Scotland can have specific relief available under the current rules, while Wales does not currently provide a separate first-time buyer LTT relief.

Calculate the tax as part of your affordability decision before you reserve. Then have your conveyancer confirm the position for your exact transaction, particularly if you are buying an additional property, using shared ownership or receiving a developer contribution.