In short
- England and Northern Ireland charge Stamp Duty Land Tax, Scotland charges LBTT and Wales charges LTT, each with its own bands and rules.
- First-time buyers in England and Northern Ireland pay nothing up to £300,000, but lose the relief entirely on a home above £500,000.
- Wales has no first-time buyer relief; Scotland has one that raises the nil band.
- The tax is due on completion, not when you reserve or exchange, and your solicitor usually files the return and pays it for you.
- In a part exchange you pay tax on the full price of the new home, not just the cash difference.
Which tax applies where
The tax you pay depends on where the home is, not where you live now. New builds are taxed in the same way as any other home: on the price, in bands, with reliefs for some buyers and extra charges for others.
| Where the home is | Tax | Collected by | Deadline for the return and payment |
|---|---|---|---|
| England and Northern Ireland | Stamp Duty Land Tax (SDLT) | HMRC | 14 days after completion |
| Scotland | Land and Buildings Transaction Tax (LBTT) | Revenue Scotland | 30 days after the effective date |
| Wales | Land Transaction Tax (LTT) | Welsh Revenue Authority | 30 days after the day after completion |
Each tax works on a slice basis. You pay nothing on the part of the price inside the nil band, then each rate applies only to the part of the price that falls inside its band. So moving into a higher band never makes the whole price taxable at the higher rate.
The figures in this guide come from the site's tax tables, last checked against GOV.UK on 21 October 2026. For your own figure on a real home, use the stamp duty calculator.
England and Northern Ireland: the standard rates
If the new home will be the only home you own when you complete, and you are not a first-time buyer, you pay the standard rates. Standard stamp duty is nil up to £125,000.
| The part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Some worked examples for a home mover buying a new build:
| Price of the new home | Stamp duty for a home mover |
|---|---|
| £250,000 | £2,500 |
| £350,000 | £7,500 |
| £450,000 | £12,500 |
| £550,000 | £17,500 |
First-time buyer relief
First-time buyers in England and Northern Ireland can claim a relief that raises the nil band to £300,000.
| The part of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
Who counts as a first-time buyer
HMRC's rules are stricter than many buyers expect:
- You must never have owned a home, or a share of one, anywhere in the world.
- If you buy with someone else, every buyer must be a first-time buyer. One previous owner on the purchase means no relief for anyone.
- You must intend to live in the home as your only or main residence.
- The buyers must be individuals, not a company.
The price limit
If the price is above £500,000, you cannot claim the relief at all. It does not taper away: you pay the standard rates on the whole price. That makes the limit a hard edge worth knowing before you choose a plot or an upgrade that changes the price.
| Price of the new home | First-time buyer pays | Home mover pays |
|---|---|---|
| £250,000 | £0 | £2,500 |
| £350,000 | £2,500 | £7,500 |
| £450,000 | £7,500 | £12,500 |
| £550,000 | £17,500 | £17,500 |
If you are buying with a scheme, see the guide for first-time buyers and new builds and the schemes pages.
Additional homes and non-UK residents
If buying the new build means you will own more than one home at the end of the day you complete, you usually pay a surcharge of 5% on top of the standard rates.
The main exception matters to many new-build buyers: if the new home replaces your main residence and you have already sold your previous main home, the surcharge does not apply. If you have not sold your old home by completion, you pay the higher rates at first. You can then claim a refund if you sell your previous main home within 36 months of buying the new one. HMRC usually pays a refund within 15 working days of receiving the claim.
There is also a separate surcharge for buyers who are not UK resident for SDLT purposes, which broadly means not being in the UK for at least 183 days in the 12 months before the purchase. It applies on top of any other rates, including first-time buyer rates if you qualify for the relief. If this could apply to you, ask your solicitor early.
Scotland: Land and Buildings Transaction Tax
New builds in Scotland pay LBTT to Revenue Scotland, not stamp duty. These are the standard residential bands:
| The part of the price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyers in Scotland can claim a relief that increases the nil rate band, which reduces the LBTT they pay.
On a £250,000 new build in Scotland, a home mover pays £2,100 and a first-time buyer £1,500.
The Additional Dwelling Supplement
If you will own more than one home anywhere in the world after buying, and you are not replacing your main home, you usually pay the Additional Dwelling Supplement (ADS) on top of LBTT. If you are replacing your main home, ADS does not apply where you sold your previous main home in the 36 months before buying. If you buy first and sell later, you pay ADS and can claim it back if you sell your old main home within 36 months of buying the new one.
An LBTT return is needed for most home purchases, even when no tax is due. In almost every case your solicitor submits it and pays the tax, but Revenue Scotland is clear that the buyer remains legally responsible.
Wales: Land Transaction Tax
New builds in Wales pay LTT to the Welsh Revenue Authority. These are the main residential rates:
| The part of the price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
There is no first-time buyer relief in Wales. A first-time buyer pays the same LTT as a home mover: on a £250,000 new build, that is £1,500.
If you already own a home, you may pay the higher residential rates, which also apply to companies and trusts. As in England, replacing your main home can mean the higher rates do not apply. A return is usually needed even when no LTT is owed, and your solicitor or conveyancer can file it and pay the tax for you.
When you pay on a new build
You pay the tax when the purchase completes, not when you reserve and not when you exchange. The deadline runs from the effective date of the transaction, which is usually completion. That matters for new builds because exchange can come months before the home is finished.
What this means if you buy off-plan
- You do not need the stamp duty money at reservation or exchange. You need it on completion day, alongside the rest of the price.
- The rates in force at completion are generally the ones that apply. When rates change, the change sometimes comes with transitional rules for contracts already exchanged, so ask your solicitor which rates apply if a change is announced between exchange and completion.
- If completion slips, your tax bill can change with it. Budget for the figure at the rates you expect on your completion date.
See the guides on buying off-plan and reservation to completion for the full timeline.
Who files the return
If you use a solicitor or conveyancer, they will usually file your return and pay the tax on completion day, and add it to their bill. You send them the money before completion. If you miss the deadline, penalties and interest can apply.
New-build situations that change the bill
Part exchange
When a builder takes your old home in part exchange, the tax law treats it as two separate purchases. You pay stamp duty on the new home based on its full price (or its market value, if higher), not on the cash difference you pay after the value of your old home is taken off. The builder may get a relief on buying your old home, but that relief is the builder's, not yours. Read more in the part exchange guide.
The builder pays your stamp duty
Some builders offer to pay all or part of your stamp duty as an incentive. The tax is still worked out on the price in your contract, and the incentive must be declared to your lender. Treat the offer as a contribution to your costs, and check with your solicitor how it is shown in the contract. The incentives guide explains how lenders treat these offers.
Furniture, carpets and curtains
Fixtures and fittings, such as kitchen and bathroom fittings, are part of the price you pay tax on. Carpets, curtains and free-standing furniture are not, if they are given a fair value and taken off the price. If a furniture pack or flooring is included, ask your solicitor whether it should be valued separately.
Shared ownership
If you buy a share of a new build through shared ownership, you can choose to pay the tax once on the full market value, or to pay on the share you buy now and possibly more later as you buy further shares. First-time buyer relief may reduce the bill. The right choice depends on your plans, so take advice and see the shared ownership page.
How to get your figure right
- Work out which tax applies from the home's location.
- Check whether every buyer is a first-time buyer, and whether anyone will own another home on completion day.
- Use the final contract price, including any extras added to it.
- Run the numbers in the stamp duty calculator, or see the full cash picture on a real home with the cash you need calculator, which is an illustration, not advice.
- Ask your solicitor to confirm the figure before exchange, and again if completion moves.
For every other cost of buying, see the guide to the cost of buying a new build.
Questions people ask
Do you pay stamp duty on a new build?
Yes. New builds pay Stamp Duty Land Tax in England and Northern Ireland, LBTT in Scotland and LTT in Wales, on the same bands and reliefs as any other home.
When do I pay stamp duty on an off-plan new build?
On completion, not at reservation or exchange. The return and payment are due within 14 days of completion in England and Northern Ireland, and within 30 days in Scotland and Wales, and your solicitor usually pays it on the day.
Can a first-time buyer get stamp duty relief on a new build?
In England and Northern Ireland, yes, if every buyer is a first-time buyer, you will live in the home and the price is no more than £500,000. Scotland has its own first-time buyer relief, and Wales has none.
Do I pay stamp duty on the full price if I part exchange?
Yes. The new home is taxed on its full price or market value, not on the cash difference after your old home is taken in part exchange.
Will I pay the higher rates if I have not sold my old home yet?
Usually yes, at first. If the new build replaces your main home and you sell the old one within 36 months, you can claim the surcharge back from HMRC.
Does a builder paying my stamp duty reduce the tax?
No. The tax is still worked out on the contract price; the builder simply contributes towards the bill, and the incentive must be disclosed to your lender.
Sources
- GOV.UK: Stamp Duty Land Tax: residential property ratesgov.uk
- GOV.UK: Stamp Duty Land Tax overviewgov.uk
- GOV.UK: What to include in a Stamp Duty Land Tax calculationgov.uk
- HMRC: SDLTM04020 exchanges and chargeable considerationgov.uk
- Revenue Scotland: LBTT residential propertyrevenue.scot
- Revenue Scotland: Additional Dwelling Supplementrevenue.scot
- Welsh Government: Land Transaction Tax rates and bandsgov.wales
- Welsh Government: Land Transaction Tax overviewgov.wales
A guide, not advice. NewHomeSearch is independent: it does not sell homes, arrange mortgages or take payment from builders. Rules change, so the stamp duty figures and live counts here come from the dated tables and today's listings. Take independent legal and financial advice before you commit.