3 per cent higher rates of SDLT on additional residential properties
3 per cent higher rates of SDLT on additional residential properties

The following Tax practice note provides comprehensive and up to date legal information covering:

  • 3 per cent higher rates of SDLT on additional residential properties
  • When were the higher 3% rates introduced?
  • What are the higher 3% rates?
  • Conditions for the higher 3% rates to apply: purchase of single dwelling
  • General conditions
  • Additional conditions for individuals
  • Conditions for individuals purchasing two or more dwellings
  • Conditions A, B and C are met for two dwellings
  • Conditions A, B and C are met for one dwelling
  • Conditions for non-natural purchasers purchasing two or more dwellings
  • More...

FORTHCOMING CHANGE relating to SDLT for non-residents buying residential property: As announced at Budget 2018, confirmed at Spring Budget 2020 and following a government consultation that ran until 6 May 2019, Finance Bill 2020–21 will include provisions for an SDLT surcharge of 2% for non-residents buying residential property in England and Northern Ireland. The surcharge will apply from 1 April 2021 (subject to transitional provisions). For more detail, see News Analyses: Draft Finance Bill 2020-21—new rates of stamp duty land tax for non-UK residents, Draft Finance Bill 2020–21—Tax analysis—New rates of stamp duty land tax (SDLT) for non-UK residents from 1 April 2021 and Reforming SDLT—the government consults on a non-UK resident surcharge.

The higher 3% rates 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 3% rates are 3% more than the standard residential property rates of SDLT. For the applicable rates of SDLT, see Practice Note: Rates of SDLT. By introducing the higher 3% rates, 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 3% rates apply and the

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