Since 1 April 2016, higher rates of stamp duty land tax (SDLT) have applied to purchases of second and subsequent residential properties, so anyone who has a second home, such as a holiday cottage or town flat is affected. However, where someone has more than one residential property, it is worth bearing in mind that the supplementary charge generally does not apply to property which replaces the main residence. Understanding the meaning of main residence for tax purposes is therefore important.
The higher SDLT rates are 3% more than the standard rates for residential sales, and are as shown in the table below.
|Purchase Price||Std Rate||Additional Properties|
|Up to £125,000||0%||3%|
|£125,001 to £250,000||2%||5%|
|£250,001 to £925,000||5%||8%|
|£925,001 to £1,500,000||10%||13%|
Reclaiming the supplement
The SDLT supplement is not repaid automatically on the sale of the old home, a claim has to be made made within the relevant time limit.
The SDLT supplement must be reclaimed within three months of the sale of the former main residence or, if later, within a year of the filing date for the SDLT return for the purchase. It is important that the claim deadlines are not missed. A repayment of the SDLT supplement can be claimed where the former main residence is sold within three years of the purchase of the new home.
If you think you may have overpaid Stamp Duty on the purchase of your home please contact us with the following details:
- main buyer’s details, if different;
- details of the property that attracted the higher rate of SDLT, including the effective date of the purchase and the SDLT Unique Transaction Reference number;
- details of the property sold;
- the amount of SDLT paid on the property that attracted the higher rates; and
- the amount of repayment claimed (i.e. the 3% supplement).
We will call you back
Need some help or advice on making a claim ask our experts