News

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

Aug 27, 2021
James Letchford discusses his top tips for commercial tenants in Property Week
Aug 03, 2021
James Letchford discusses simplifying VAT on property
Jul 23, 2021
James Letchford discusses commercial properties and boundaries
Jul 13, 2021
James Letchford discusses the extension of certain temporary protections for commercial tenants
Jul 09, 2021
James Letchford discusses commercial properties and the impact of knotweed
Jul 01, 2021
James Letchford discusses the transfers of property and HM Land Registry
Jun 29, 2021
Commercial Property Update Spring/Summer 2021
Jun 23, 2021
James Letchford provides a quick guide about protected tenancies and contracting out
Jun 15, 2021
James Letchford discusses the code for leasing business premises
Jun 02, 2021
Ian Layzell-Smith discusses excluding security of tenure from a commercial lease

© 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)