Additional dwellings higher stamp duty still applies
On the back of The Chancellor, Rishi Sunak’s, announcement on 8th July, on the temporary overhaul of Stamp Duty Land Tax (SDLT), landlords wishing to buy an additional home to rent will still have to pay the additional higher rate.
When purchasing a property as a main residence between 8 July 2020 and 31 March 2021. SDLT is only paid on the amount the property is purchased at above £500,000. These rates apply whether buying a first home or for those that have owned property before. However, for anyone wishing to purchase an additional property between that time. They also won’t have to pay standard rates of SDLT, but will have to pay the additional higher rates:
- Three per cent – properties up to £500,000
- Eight per cent – properties priced from £500,001 to £925,000
- 13 per cent – properties priced from £925,001 to £1.5 million
- 15 per cent – the portion or properties above £1.5 million
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