Residential Stamp Duty Rules on Second Homes
The specialist conveyancing team here at Bartletts is renowned for buying, selling and transferring property with a minimum of fuss. We are experts at advising on stamp duty liabilities.
Since 1st April 2016, property buyers in England and Wales are obliged to pay an extra 3% above the current rates in Stamp Duty Land Tax (SDLT) on purchases of additional residential properties - classified as any property that is not the buyer's main residence - with a value above £40,000.
The legislation aims to make it easier for first-time buyers to get on the housing ladder by increasing the stamp duty bills of buy-to-let landlords and purchasers of second homes. It is also intended to boost the government's affordable housing budget, and slow the rapid growth of the often controversial buy-to-let industry.
New: The temporary stamp duty holiday was due to end on June 31st, however, the Chancellor announced in this year’s Budget that it will continue to operate at a reduced rate until 1st October. From 1st July to 30th September, no stamp duty is payable on the first £250,000 of property sales in England and Northern Ireland. From 1st October, rates will return to normal with stamp duty payable on the value of residential properties over £125,000.