Stamp Duty (SDLT) is a tax that is charged when you purchase property or land in England and Northern Ireland, the current thresholds which will remain in place until 31 March 2025 are as follows:

• £250,000 for residential properties 

• £425,000 for first-time buyers buying a residential property worth £625,000 or less 

• £150,000 for non-residential land and properties

The recent Autum Budget confirmed an increased SDLT surcharge for additional residential properties, including investment properties and second homes. The change came into force with immediate effect from 31st October and saw a rise from 3% to 5% on the first £250,000 of the purchase price, resulting in further upfront costs for those investing in rental properties or purchasing second homes.

The new rates for second homes and investment properties are as follows:

Property Value                                SDLT Rate on Second Homes & Investment Properties

Up to £250,000                                 5%

£250,001 to £925,000                      10%

£925,000 to £1.5 million                   15%

Over £1.5 million                              17%

If you are a purchasing a second property with the intention of making it your main residence, then timing is important.  The surcharge for owning an additional property will need to be paid on completion of the purchase but if your first property is subsequently sold within 3 years of the completion of the additional property, you will be entitled to apply for a refund of the surcharge paid.

SDLT is due within 14 days of completion, therefore you should ensure from the outset you will have the funds available to avoid paying late fees and interest.

If you require advice in relation to buying a second property, please contact any member our residential property team for assistance on 01494 521 301.