Higher rates of SDLT on additional residential properties


Published by a ³ÉÈËÓ°Òô Tax expert
Practice notes

Higher rates of SDLT on additional residential properties


Published by a ³ÉÈËÓ°Òô Tax expert

Practice notes
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The higher rates surcharge of stamp duty land tax (SDLT) apply to:

  1. •

    purchases of certain additional residential properties by individuals, and

  2. •

    purchases of residential properties by purchasers who are not individuals regardless of whether they hold any other residential properties

The higher rates surcharge was initially 3% more than the standard residential property rates of SDLT. At Autumn Budget 2024, the government announced that the higher rates surcharge would be increased from 3% to 5% with effect for land transactions with an effective date on or after 31 October 2024 subject to transitional provisions. For the applicable rates of SDLT, see Practice Note: Rates of SDLT. By introducing the higher rates surcharge, the government aims to support owner occupiers and first time buyers by making it more expensive to buy additional property such as second homes and buy-to-let properties. This Practice Note looks at when the higher rates surcharge applies and the interaction with other SDLT provisions.

The higher rates surcharge is referred to as the higher rates of SDLT. There is

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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