We continue to provide our legal services through the COVID-19 lockdown. Please visit our COVID-19 Hub for legal insights, or contact us directly.
Get in Touch Menu

New rate of stamp duty land tax for second homes

09 March 2016

From 1 April 2016, a supplementary rate of SDLT will apply to purchases of additional residential properties. This will cover second homes and buy-to-let properties and potentially other transactions.

The extra rate will be 3% and will apply as well as the current SDLT rates. The new rate will be based on the full purchase price for all purchases over £40,000. This rate will not apply if, following the purchase, the buyer will own only one residential property, irrespective of the intended use of the property.

The higher rates will not apply to caravans, mobile homes or houseboats or potentially to companies and individuals with portfolios in excess of 15 residential properties.

If at the completion of a transaction an individual owns two or more residential properties, whether he pays the higher rates or not will depend on whether he is replacing his main residential dwelling.

The Treasury recognises that there may be certain circumstances where purchasers have to pay the tax at completion but their circumstances then change. These people will be eligible for a refund of additional stamp duty land tax paid. This can be applied for up to 18 months after completion.

Robert leads our 6-lawyer residential property team. He handles all aspects of residential property work and also acts for property developers in relation to both land acquisition and plot sales, as well as for clients with rural property.

We're here to help
Robert Draper LLB (Hons)
View profile
Related services
Share this article
Resources to help

Related articles

Coronavirus: What it means for residential landlords


The government has passed emergency legislation to protect tenants from eviction during the COVID-19 pandemic, by the Coronavirus Act 2020. These changes affect nearly all tenants in the private rented…

Nick Southwell LLB (Hons)
Associate, solicitor

Coronavirus and lease obligations: Q&A for commercial tenants


You’ll no doubt be aware of the concessionary measures that are being introduced by the government to help ease the potential economic fallout of COVID-19 on UK businesses. In the…

Nigel Whittaker BA (Hons)

New faces and promotions at Willans

Wills, trusts & probate

We’ve recently appointed six additional lawyers, and made three senior-level promotions, to help meet the growing demands of our commercial and private clients. Our Legal 500-rated wills, probate & trusts…

Contact us