As part of the 2016 Budget, higher rates of stamp duty land tax will be introduced on purchases of any additional residential home. The rates will be 3% above the current rates and will take effect from 1 April 2016.
The purpose behind these changes is to reduce the number of second homes and to help towards increasing the affordable housing budget for first time buyers.
If you purchase a new residential home and are waiting to sell your previous main residence, the transaction will be subject to the higher rate but a refund is available if your previous main residence is sold within 36 months.
The rates are listed below:
Purchase price Stamp Duty Additional residential home
£0 – £125,000 0% 3%
£125,001 – £250,000 2% 5%
£250,001 – £925,000 5% 8%
£925,001 – £1.5m 10% 13%
All information is correct on the date of posting.