How much Stamp Duty will I pay on a new home?
Buying a new build home is an exciting milestone, but it's important to understand the additional costs involved.
This blog outlines some helpful information on what Stamp Duty is, including the changes which have come into effect as of 1st April 2025, and how much Stamp Duty you may be required to pay subject to your buying status.
What is Stamp Duty?
Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a tax payable when you buy a property or land over a certain price in the UK. The amount you pay depends on the property’s price and whether you are eligible for relief or an exemption. The tax applies to all property types, meaning it doesn’t matter if it’s a freehold, a leasehold, a flat, a new build house, a bungalow or you’re buying the home outright.
In simple terms, the more expensive the property you buy, the more Stamp Duty you’ll pay. A higher rate of Stamp Duty will also apply if you own more than one property at the time of purchasing your new home. If you’re a first-time buyer, the initial threshold at which you start to pay Stamp Duty is higher, meaning you’ll pay less than those purchasing their second property.
For more information, visit the Government’s website, where you’ll find a comprehensive breakdown of SDLT.
Stamp Duty changes
From 1st April 2025, the Stamp Duty threshold returned to its previous levels (pre-September 2022) of £125,000 for existing buyers, while the rate for first-time buyers has returned to a threshold of £300,000.
This therefore means that first-time buyers are exempt from Stamp Duty on properties up to £300,000, but for properties priced between £300,001 and £500,000, a 5% tariff is applied on the portion above £300,000, and no relief is available for properties over £500,000.
The Stamp Duty changes will also impact those purchasing a second home or buy-to-let property. An additional 5% surcharge will be applicable on top of each Stamp Duty band.
The new rates (from 1 April 2025) will be:
Purchase price | SDLT rate* |
Up to £125,000 (or £300,000 for first-time buyers) | Zero |
The next £125,000 (£125,001 to £250,000) | 2% |
The next £675,000 (£250,001 to £925,000) | 5% |
The next £575,000 (£925,001 to £1.5m) | 10% |
The remaining amount (over £1.5m) | 12% |
*Additional rates apply if you own more than one property. Please speak to a professional adviser.
Calculating Stamp Duty on a new build home
To find out how much tax you’ll be required to pay, you can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator. Here you can input the information based on your buying status and the price of the property you are purchasing for a more accurate example.
SDLT is payable within 14 days of completion, but your solicitor or conveyancer will normally deal with this for you. They will then generally add this to your completion statement or add the amount to their fees.
Understanding the current Stamp Duty rates when purchasing a new home is crucial in allowing yourself to better prepare for the financial requirements associated with purchasing a property. Gleeson has several buying schemes available to help make owning your dream home even easier to achieve. For more information on the schemes and offers applicable at your chosen new build development, please speak with your Sales Executive.
Please note, this blog does not substitute for professional advice. We recommend that you consult with a solicitor or professional adviser to ensure you have access to accurate information tailored to your specific circumstances.
