The amount of stamp duty land tax (SDLT) people pay on second homes has risen two percentage points to 5%, Chancellor Rachel Reeves announced in yesterday’s budget (30 October 2024).
In a move effective from today (31 October 2024), the increase will affect individuals and landlords purchasing additional residential property such as second homes or buy-to-let properties in England and Northern Ireland.
The measure also increases the single rate of SDLT payable by companies and other non-natural persons when purchasing residential properties worth more than £500,000, from 15% to 17% with the top rate (inclusive of the additional 2% for overseas purchasers) being 19%.
Following yesterday’s announcement in the Labour government’s Autumn budget, SDLT rates on second homes are now:
£0-£250,000: 5%
£250,000-£925,000: 10%
£925,000-£1.5m: 15%
£1.5m+: 17%
Read the government’s full policy paper on the changes to Stamp Duty Land Tax here.
For advice and assistance in respect of second home ownership or if you are non-resident or non-domiciled person or business looking to purchase property in the Prime Central London market, please contact Alex Finney via af@muscattblackgraf.com
This blog was prepared on 31 October 2024. It is not intended to be advice and should not be relied upon as such.