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...

3 per cent higher rates of SDLT on additional residential properties

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 interaction with other SDLT provisions such as multiple dwellings relief (MDR).

The 3% surcharge or supplemental charge is referred to as the higher rates of SDLT. There is also a higher rate of SDLT, which is a 15% rate. See Practice Note: 15% rate of SDLT for high-value residential property transactions. In addition, non-UK residents acquiring residential property since 1 April 2021 pay a 2% surcharge in addition to the other residential rates. For more on the 2% surcharge, see Practice Note: 2% SDLT surcharge for non-residents.

SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland

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