Increased SDLT Rates for Second Homes and Buy-To-Let Properties

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The Chancellor announced in the 2015 Autumn Statement and Spending review that from 1 April 2016 higher rates of Stamp Duty Land Tax (SDLT) will apply to the purchase of additional residential properties, such as second homes and buy-to-let properties.

Buyers will have to opt in to these higher rates by declaring that the purchased property will not be their primary residence. This will apply whether the purchaser is an individual, a partnership, a company or a trust, unless a special exemption is available.

A property owned outside England, Wales or Northern Ireland may also be taken into account.

The new rates will be 3% above the current SDLT rates for residential property and will apply to chargeable considerations that exceed £40,000.

These increased rates will not apply to corporate or fund purchases that make significant investments in residential property.

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