Back
We continue to provide our legal services through the COVID-19 pandemic. 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.

We're here to help
Contact
Suzanne O'Riordan
Partner (non-solicitor)
View profile
Suzanne O'Riordan
Related services
Share this article
Resources to help

Related articles

Stamp Duty Holiday: How does it work, and what does it mean for you?

Buying & selling

The Government’s Stamp Duty Land Tax (SDLT) holiday runs until 31st March 2021, and removes the standard rate of SDLT for transactions under £500,000 in England. Transactions over this amount…

Héloïse Brittain LLB (Hons), GCILEx
Conveyancer

Caution required when buying a listed building

Buying & selling

While owning a listed building can bring great pleasure, it does bring many obligations. Before purchasing a listed property or starting renovations consider this guide. Cheltenham Borough Council recently won…

Suzanne O'Riordan
Partner (non-solicitor)

Think twice before you sell part of your property

Buying & selling

Do you want to make some money from that bit of garden or that part of your site that you never use or perhaps you were hoping to buy a…

Suzanne O'Riordan
Partner (non-solicitor)
Contact us