Implications of the extra stamp duty on second homes/buy to let

Increase in SDLT for additional residential properties

As from 1 Aptil 2016 there will be an extra 3% stamp duty land tax (SDLT) charge on the purchase of additional residential properties. We don't know the details yet but they state it will apply to the purchase of buy to let properties and second homes (above £40,000).

The extra 3% will be on top of the current SDLT rates. Current SDLT rates vary between 0% and 12% so depending on the detailed provisions we could potentially see something like:

If it did apply in this way it would be a significant increase.

Example

Lets look at a property costing £600,000 and compare the two rates and eventual SDLT due based on the limited information we have at present: