SDLT on Second Properties

  • January 04, 2016
  • By Hunters Law

In his Autumn Statement, the Chancellor announced that from 1st April 2016, existing Stamp Duty Land Tax (SDLT) residential property rates will be increased by 3% for the purchases of additional properties, such as buy-to-let properties or second homes.

Following the restriction on interest relief on buy-to-let properties announced in the Summer Budget, the Chancellor has strengthened his clampdown on buy-to-let landlords in favour of first time buyers, and also hit prospective purchasers of second homes, including holiday homes. At the top end of the market, the extra SDLT payable will be significant; at the lower end of the market, time will tell whether the changes will deter buy-to-let investors.

It has been suggested that the additional rate of SDLT will not apply to corporates or funds making significant investments in residential properties, nor will it apply to the purchases of caravans, mobile homes and houseboats.

It is not yet clear whether there will be any impact in the scenario where a parent helps their child to get a foot on the property ladder, or in the situation where trustees purchase more than one property, perhaps for multiple beneficiaries.  It is also unclear whether the additional rate will apply to house moves involving short periods of bridging between properties, e.g. where a new property is purchased before a previous property is sold, although it is understood there will be some leeway in situations like this.

The finer details will become clearer in due course, and no doubt issues like these will be considered in the consultation process.

For more information, please contact the partner having responsibility for your affairs, or for new business any partner in the Private Client Department.

Related News

Apr 14, 2021
Peter Robinson discusses the practical issues arising from registration of land as a Town and Village Green (“TVG”)
Mar 24, 2021
Peter Robinson has been featured in the 2021 Spear’s Property Advisers Index
Feb 08, 2021
Peter Robinson discusses Indexation Based Rent Reviews
Jan 19, 2021
Peter Robinson comments on what new and existing landlords need to know in RBS HomeWise
Jan 04, 2021
Peter Robinson discusses The Supreme Court’s decision in Alexander Devine Children’s Cancer Trust v Housing Solutions Ltd
Dec 11, 2020
Hunters retains Law Society’s Conveyancing Quality Scheme accreditation
Nov 12, 2020
Peter Robinson examines the government’s ban on evictions of commercial tenants during the pandemic and what commercial landlords should consider in The Law Society
Nov 12, 2020
Ben Gurluk comments on the Stamp Duty holiday in the Daily Express
Oct 30, 2020
Peter Robinson examines a recent Supreme Court case that is relevant for property investors in the challenging environment of the retail property market in Lawyer Monthly
Oct 22, 2020
Peter Robinson analyses the government’s extension of moratorium on eviction in New Law Journal

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)