Stamp Duty Land Tax
The government announced an increase to the Higher Rates for Additional Dwellings surcharge on Stamp Duty Land Tax (SDLT), from 3% to 5%.
The surcharge applies to individuals purchasing an additional dwelling, and to residential property purchases by corporate bodies and trusts.
This measure is effective from 31 October 2024.
To illustrate the impact, a UK-resident buying a second property for £250,000 would have been liable to SDLT of £7,500 for completion of a property purchase up to and including 30 October 2024. The SDLT payable on a property completion from 31 October 2024 on the same purchase will be £12,500, an increase of £5,000.
The government will also increase the single rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies, from 15% to 17%. Relief may be available from this higher charge under certain circumstances, including if the property is used in a property rental business, or bought by a property developer or trader.