Stamp duty land tax is a lump sum tax that anyone buying a property or land costing more than £125,000 must pay. The rate you will have to pay varies based on the price of the property.
In April 2016, a stamp duty surcharge of 3% was imposed on second homes. If you are considering a second home, whether for your own use or as a buy-to-let investment, we have put together some helpful points to bear in mind.
Second homes are homes other than your main residence, whether they are let or not, but a buy-to-let property will not have to pay the higher rate if the main residence is rented (not owned).
A homeowner who is helping a family member buy a property and will be named on the deeds of the property will still be seen as a second homeowner and the relatives will be liable for the surcharge.
If a family member is giving you money (loan or gift) but will not be named on the deeds of the property you will not have to pay the additional surcharge.
If you own two homes because you have bought a new one but, not yet sold the old home, you will have to pay the 3% surcharge. If the old home is sold within three years then the 3% charge will be refunded.
Couples who live together (married or not) will now be treated as one unit and will not be able to escape the surcharge by putting one property in one partner’s name and another in the others.
If you have separated, but not yet divorced, and own two properties between you, then you will not be charged the 3%.
To calculate your stamp duty visit the government’s Stamp Duty Calculator