Skip to main content Skip to footer

Stamp duty on new build house in exchange for present property, is stamp duty on difference or based on full price for new property?

If I exchange my property at £134.500 with the builder for a new build at £330.000, will I have to pay stamp duty on the full amount or just on the difference of £194.500 so 1% in place of 3%. Thank you.

Asked on Aug 18 2011, Home Finance in Bristol | Report content

Answers (2)

Was this question useful? Yes 0 No 0

Sort by: Oldest | Recent | Highest rated

  • You just know what HMRC's answer is going to be. Hard luck, SD is calculated on each property. HMRC see it as two transactions - also the builder has to pay 1% on buying your house. You could always push the builder to knock 3% off his £330k price and you knock 1% off your £134,500. .... There is a very complicated way round it (see weblink) but not appropriate here

    Web reference:

    Answered on Aug 19 2011, Report content
  • As per the previous answer, unfortunatley you will have to pay stamp duty on the full purchase price amount, a nice £9,900 to the government!!

    Answered on Aug 19 2011, Report content

Didn't find what you were looking for? Ask a question

More Home Finance in Bristol questions on AskMe

See more AskMe Q&A about Home Finance