Following a few calls from clients about stamp duty on second homes, we thought we’d do a brief blog about it.
Stamp duty Land Tax (SDLT) is payable to HMRC on the purchase / completion of any residential property above £125,000.
Purchase price up to £125,000, SDLT rate Zero – additional properties are charged at 3%
£125,001 to £250,000 SDLT rate is 2% – additional properties are charged at 5%
250,001 to £925,000 SDLT rate is 5% – additional properties are charged at 8%
925,001 to 1.5m SDLT rate is 10% – additional properties are charged at 13%
1.5m or above SDLT rate is 12% – additional properties are charged at 15%
Stamp duty calculation
If you buy a second residential property costing £325,000, the SDLT calculation is as follows
£125,000 x 3% £3,750
£124,999 x 5% £6,250
£75,001 x 8% £6,000
Total SDLT due is £16,000
Please call us on 0151 931 2724 to discuss further, as it may be beneficial to purchase additional property through a Limited Company.
