As of October 31st, 2024, the Stamp Duty Land Tax (SDLT) surcharge on second homes has risen from 3% to 5% above standard residential rates. This new rate is aimed at slowing down purchases of additional properties and could impact individuals who are in the process of selling their first property after acquiring their new main residence.
Who Does This Impact?
• Anyone buying a second home or additional property, including those who haven’t sold their old primary residence yet.
• Those who have signed contracts before October 31st, 2024, can still benefit from the old rate if certain rules are met.
Signed a Contract Before October 31, 2024?
If you signed a contract before this date but the sale completes after, you may still be eligible for the 3% surcharge rate if:
• No major changes are made to the contract after October 30th, 2024.
• There are no added clauses or rights assigned to someone else.
Effective Dates & Rates
• Contracts with Completion Between October 31st, 2024, and March 31st, 2025: The higher rates will apply at 3% above the current residential rates that apply between 23rd September 2022 and 31st March 2025.
• Contracts Completing After April 1st, 2025: The new 5% rate will apply to the permanent residential rates.
Consult With Your Adviser
For a second home costing £200,000, the stamp duty will now be £10,000 at the new 5% rate, up from £6,000 at the previous 3% rate. This increase in SDLT could impact anyone buying an additional property after October 31st, 2024, so plan ahead and consult with a taxation specialist if you’re in the process of buying an additional property.
For more information on Stamp Duty, visit the GOV.UK page - https://www.gov.uk/stamp-duty-land-tax
If you’d like to discuss the options available to you, get in touch and we can arrange an appointment.
コメント