You must pay Stamp Duty Land Tax (SDLT) on any residential property where the purchase price is over £125,000.
If the property is being purchased as a second home or a buy to let property, or at the end of the day of the transaction, if you will own two or more residential properties and are not replacing a main residence, you will have to pay the higher rate of Stamp Duty Land Tax that are applicable on purchases of additional residential properties from 1st April 2016 onward.
You can use our Stamp Duty Calculator to find out how much SDLT you will have to pay on your additional property purchase.
Stamp Duty Rates for Additional Property Purchases
|Property or lease premium or transfer value||Old SDLT Rate||New SDLT rate|
|Up to £40,000||Zero||Zero|
|£40,000 - £125,000 (on the portion from £0 - £125,000)||Zero||3%|
|The next £125,000 (the portion from £125,001 to £250,000)||2%||5%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%||8%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%||13%|
|The remaining amount (the portion above £1.5 million)||12%||15%|
If you buy an additional property for £280,000, the SDLT you owe is calculated as follows:
3% on the first £125,000 = £3.750
5% on the next £125,000 = £6,250
8% on the final £30,000 = £2,400
Total SDLT = £12,400
Before April 1st 2016, the Stamp Duty payable would have been only £4,000, so the amount due has more than trebled.
You can read more about SDLT on residential property purchases in our help and advice section.