Higher Rate of Stamp Duty Land Tax now payable when Purchasing Additional Residential Properties

Ruth Flinn

27 April 2016

The government have introduced measures which will mean that higher rates of Stamp Duty Land Tax (SDLT) may be payable if you purchase an additional residential property.

These higher rates took effect from 1 April 2016. The higher rates will be 3% above the current SDLT residential rates. They will be charged on the portion of the value of the property that falls into each band. These bands will be set out as follows:-

Purchase price Band

Existing residential SDLT rates

New additional property SDLT rates

£0* - £125k



£125k - £250k



£250k - £925k



£925k - £1.5m



£1.5m +



Whilst there are many complex scenarios as to when the higher SDLT rate will be applied, the most common scenario in which you will have to pay the higher SDLT rate is where you are purchasing a buy-to-let or second home in addition to your main residence. There are however may exceptions to this very general rule and you should seek specialist advice. In certain circumstances you may become entitled to a refund on the additional stamp duty paid.

Tax matters can be complex at the best of times and so if you are in any doubt as to whether the higher band of SDLT will be payable on your new property, you should contact the HMRC or your accountant, or alternatively seek advice from the solicitor handling your property transaction.

If you require any further information on buying or selling property, please feel free to contact Ruth Flinn on rflinn@fhanna.co.uk.  Alternatively, please telephone 028 9024 3901 or contact us online using the contact us form.