Question 1

How much is stamp duty on second property in UK?

Accepted Answer

There is higher tax payable on the consideration on land/property for buyers who own another property, on completion. This doesn't apply if you are replacing your main residence.         Property or lease premium or transfer value   SDLT rate     Up to £250,000   3%     The next £675,000 (the portion from £250,001 to £925,000)   8%     The next £575,000 (the portion from £925,001 to £1.5 million)   13%     The remaining amount (the portion above £1.5 million)   15%

Question 2

Who pays second home stamp duty?

Accepted Answer

You must pay the higher rate if all of the following conditions apply:     You are buying a residential property (or part of one) for £40,000 or more You own (or part own) another residential property worth £40,000 or more, anywhere in the world You have not sold or given away your previous home Neither dwelling is subject to a lease which has more than 21 years left to run     You don't have to pay the higher rate if you're selling your main residence to buy a property which will replace it as your main residence, even if you own multiple properties.    If you sell your old property within the first 36 months of buying the new one, you could claim a refund of the additional stamp duty.    For example: John lives and owns Property A as his main residence. John buys Property B. If at the time of completion John didn't sell Property A, then he will have to pay the second home stamp duty charge. It doesn't matter if John moves to Property B and chooses this to be his main residence, he still has to pay the additional 3% charge, because he hasn't sold Property A at the time he bought Property B.     For example: John lives and owns Property A as his main residence. John buys property B. On the day of completion John sells Property A, and buys Property B, then there is no second home stamp duty charge.    Our stamp Duty Calculator provides results for both sole property owners and second home owners.

Question 3

Second Home Stamp Duty for married couples & civil partners

Accepted Answer

If you are married or in a civil partnership then you need to check your individual circumstances, even if one of you is not going to be an owner of the property.    As a rule, if either of you own another property on completion, it does not matter whether you are legal owners jointly or solely, you may still have to pay the second home stamp duty if you fall under the set criteria.    The exact wording is as follows:    3.44 Where an individual with a spouse or civil partner purchases an interest in a dwelling and their spouse or civil partner is not a joint purchaser, the spouse or civil partner will be treated as a joint purchaser in respect of the transaction. 3.45 This means that where a purchaser is married or in a civil partnership, if Conditions A to D are met by either spouse or civil partner, the transaction will be a higher rates transaction.    Example 1 - Married with 2 separate properties Andrew and Jayne, a married couple, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Jayne: the property owned by Andrew is rented out. Jayne is selling her property and they are jointly purchasing a new one, which will be their new main residence. Andrew will retain his rented out property.    The higher rates will not apply to the joint purchase by Andrew and Jayne of a new main residence. As they are married and have both lived in the property owned by Jayne as their main residence they will both be treated as replacing their main residence.    Example 2 - Unmarried with 2 separate properties Alyson and James, who are not married to one another, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Alyson: the property owned by James is rented out. Alyson is selling her property and they are jointly purchasing a new one, which will be their new main residence. James will retain his rented out property.    The higher rates will apply to the joint purchase of a new main residence by Alyson and James. As they are not married (or in a civil partnership) James will not be treated as replacing his main residence as, even though he has been living in the property owned by Alyson, he has no interest in the property Alyson is selling.    Read the full details on the Government Website for Stamp Duty Land Tax higher rates for purchases of additional residential properties.

Question 4

Do you pay the 2nd home tax if you own a property overseas?

Accepted Answer

If you or any joint owner own a property inside or outside of the UK that isn't being replaced by the purchase of your new property, then you will pay the additional stamp duty tax at the prevailing rate.

Question 5

How much SDLT do non residents pay?

Accepted Answer

Non-UK residents must pay a 2% surcharge on all property bought in England and Northern Ireland, on top of any other applicable tax rates including higher rates for second homes.

Question 6

Do companies pay the second home stamp duty tax?

Accepted Answer

The rules state:    5.1 The higher rates will apply to the purchase of major interests in one or more dwellings by a company, if Conditions A and B are met in respect of at least one of the dwellings:     Condition A - the dwelling is purchased for chargeable consideration of £40,000 or more; Condition B - the dwelling is not subject to lease which has more than 21 years to run on the date of purchase;     5.2 If none of the interests in dwellings meet both Conditions A and B then the higher rates will not apply to the purchase.

Question 7

Is there 2nd home stamp duty to pay with a Joint Mortgage Sole Proprietor mortgage?

Accepted Answer

The rules state:    Mr and Mrs M are helping their son buy his first property by providing the deposit for a flat which will be his main residence. Mr and Mrs M currently own just one property, the family home. Due to the bank’s lending criteria they require Mrs and Mrs M to be a party to the mortgage and be on the deeds of the property. On the same day as the purchase a deed will be executed which will provide that Mr and Mrs M have no interest in the property and that their son has full beneficial interest in the property.    The higher rates will not apply because Condition C is not met    Taking the above into consideration, if your intentions were for the legal owner to own 100% of the beneficial interest and for the parents to just be on the mortgage, then you would not pay the second home stamp duty tax.    If your intentions are for the parents to have a beneficial interest in the property and that they already own a beneficial in another property that is worth more than £40,000, then the second home stamp duty will apply.

Property Price	Standard Rate of Stamp Duty	Additional Home Rate (updated post Oct 2024 budget)	Non UK Resident Rate
£0 - £125,000	0%	5%	2%
£125,001 - £250,000	0%	5%	2%
£250,001 - £925,000	5%	10%	2%
£925,001 - £1.5 million	10%	15%	2%
Over £1.5 million	12%	17%	2%

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