Changes to Stamp Duty from 1 April

Increased SDLT rates for second homes and buy-to-let properties

From 1 April 2016, higher rates of stamp duty will apply to the purchase of additional residential properties (such as second homes and buy-to-let properties). Details have not been issued but the higher rates will be 3% above the current rates for residential property.

Therefore, the following rates will apply on a progressive basis to acquisitions of such residential property:

  • £0 to £40,000: 0%
  • £40,001 to £125,000: 3%.
  • £125,001 to £250,000: 5%.
  • £250,001 to £925,000: 8%.
  • £925,001 to £1.5 million: 13%.
  • Over £1.5 million: 15%.

Purchasers of additional residential properties will have to effectively opt in to the higher rates by declaring that the acquired property will not be their primary residence.

The increased rates will not apply to corporate or fund purchasers that make significant investments in residential property. The consultation will consider whether the ownership of more than 15 residential properties is appropriate as a “significant investment” for these purposes.

The higher rates will also not apply to acquisitions of caravans, mobile home or houseboats.

Glen Salt

Glen Salt
Commercial Property Team
0113 227 9253


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