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Current Stamp Duty Rates for Second Homes and Buy to Let Purchases

You must pay Stamp Duty Land Tax (SDLT) on any residential property where the purchase price is over £40,000 and you are buying a second home or a purchasing the property as a buy to let.

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.

Property or lease premium or transfer value Old SDLT Rate New SDLT rate
Up to £40,000 Zero Zero
£40,000 - £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%

Example

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!

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