The stamp duty cut announced in the recent budget will also apply to those buying second homes and buy-to-let properties.
Government documents published following the Chancellor’s speech state that the tax relief for properties worth up to £500,000 will apply for those buying a first or subsequent property.
However, the 3% surcharge for buying additional properties will apply in addition to the new standard rates.
Therefore, for purchases in addition to a first home, just 3% will be paid for properties valued at up to £500,000, as opposed to the 5% paid before the adjustment.
After that, rates will apply as follows:
|The next £425,000 (the portion from £500,001 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%|
The relief will also be applicable for properties to which inheritance tax applies.
The government says: Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15 per cent SDLT charge.
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