Higher rates of SDLT on additional residential properties


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Tax expert
Practice notes

Higher rates of SDLT on additional residential properties


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Tax expert

Practice notes
imgtext

The higher rates surcharge of stamp duty land tax (SDLT) apply to:

  1. •

    purchases of certain additional residential properties by individuals, and

  2. •

    purchases of residential properties by purchasers who are not individuals regardless of whether they hold any other residential properties

The higher rates surcharge was initially 3% more than the standard residential property rates of SDLT. At Autumn Budget 2024, the government announced that the higher rates surcharge would be increased from 3% to 5% with effect for land transactions with an effective date on or after 31 October 2024 subject to transitional provisions. For the applicable rates of SDLT, see Practice Note: Rates of SDLT. By introducing the higher rates surcharge, the government aims to support owner occupiers and first time buyers by making it more expensive to buy additional property such as second homes and buy-to-let properties. This Practice Note looks at when the higher rates surcharge applies and the interaction with other SDLT provisions.

The higher rates surcharge is referred to as the higher rates of SDLT. There is

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

Read more

Popular documents

Stamp duty reliefs—intra-group, reconstruction and acquisition reliefs

Stamp duty reliefs—intra-group, reconstruction and acquisition reliefsFORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: Following the call for evidence in 2020, the resulting outcome published in 2021 and consideration by the relevant HMRC and industry working

2% SDLT surcharge for non-residents—training materials

2% SDLT surcharge for non-residents—training materialsThese Training Materials cover the 2% stamp duty land tax (SDLT) surcharge that applies from 1 April 2021 to acquisitions of residential property in England and Northern Ireland by non-UK residents. They consist of template PowerPoint slides and

SDLT—multiple dwellings relief

SDLT—multiple dwellings reliefFORTHCOMING CHANGE relating to residential and non-residential property and multiple dwellings relief: HMRC consulted until 22 February 2022 on possible changes to (a) the way stamp duty land tax (SDLT) is calculated in respect of purchases of mixed use property, and

Growth market exemption from stamp duty and SDRT

Growth market exemption from stamp duty and SDRTFORTHCOMING CHANGE: Autumn Finance Bill 2023 (AFB 2023, which is also known as FB 2024) includes a measure (which was first announced at Autumn Statement 2023) to widen the growth market exemption from stamp duty and SDRT, with effect from 1 January