Stamp Duty for Second Homes

So if you are considering buying a second home or investment property in England or Northern Ireland you may be wondering what other fees you will need to pay in addition to your deposit. Well, for any additional property purchase, that is not your primary residence, you will need to pay Stamp Duty Land Tax (SDLT). You have 14 days to file a Stamp Duty Land Tax (SDLT) return and pay any SDLT due. In Scotland, Land and Buildings Transaction Tax (LBTT) is payable.

Are Second Homes Exempt From Stamp Duty?

Second homes will only be exempt from stamp duty if they cost under £40,000. For every other second home purchased, you will be required to pay stamp duty.

How Much Is Stamp Duty For Second Homes?

Stamp duty for any second home is an additional 3% on top of the usual rate, so it can become quite expensive. Rates of stamp duty are outlined below:

Stamp duty land tax rates for England:

Homeowner

0-250k = 0, £250,001-£925k = 5%, £925,001-£1,500,000 = 10%, £1,500,001+ = 12%

Second home

0-250k = 3%, £250,001-£925k = 8%, £925,001-£1,500,000 = 13%, £1,500,001+ = 15%

To calculate how much stamp duty you will need to pay, use our stamp duty calculator |(do we have a link to one?)

Do I Still Have To Pay Stamp Duty On My Second Home If I’m Not a UK Resident?

If you are not from the UK but are buying a property in England or Northern Ireland, you may have to pay a higher rate of stamp duty at an additional 2% on top of what a UK resident would pay.

Do Second Homes Qualify For Stamp Duty Relief?

Second homes do not qualify for stamp duty relief. This can only be claimed as a first-time buyer.

How Do I Avoid Stamp Duty On My Second Home?

Unfortunately, there are no ways to avoid paying stamp duty on a second home, but there are circumstances in which you may be able to apply for a refund, such as if the property is deemed uninhabitable. Always consult your solicitor if you think the property you are buying may fall into this category.

Do I Still Have To Pay Stamp Duty If I’m Replacing My Current Home?

If your second home is being bought as your main residence, you may be able to claim the stamp duty back. This may happen if there is a delay in you selling your home before you buy a new one. If you sell your original property within 3 years of buying your new home, you can claim a stamp duty refund. The refund must be requested within 12 months of the sale of your previous main residence.

When Is Stamp Duty Not Payable?

Stamp duty is not payable if the purchase price for the property is below £40,000. On all properties above £40,000, stamp duty is payable on completion of the purchase.