Stamp Duty Rules and Rates on 2nd Property

Published / Last Updated on 31/03/2023

You may or may not be aware that a ‘Stamp Duty’ Land Tax is payable when you buy property in the UK but rates and bands vary between England/Northern Ireland, Scotland and Wales.   In addition, when you buy 2nd properties, additional homes, holiday homes or buy to let investments, there is an additional land purchase tax levy.

The Additional Levy for 2nd Property Purchases

  • England and Northern Ireland is 3%
  • Scotland is 4%
  • Wales is 4%

England and Northern – Stamp Duty Land Tax (SDLT)

Purchase Price

Normal SDLT Rate

SDLT Rate for 2nd or Additional Properties

£0 to £40,000

0%

0%

£40,001 to £250,000

0%

3%

£250,001 to £925,000

5%

8%

£925,001 to £1.5m

10%

13%

Over £1.5m

12%

15%

 

Scotland – Land and Buildings Transaction Tax (LBTT)

Purchase Price

Normal LBTT Rate

LBTT Rate for 2nd or Additional Properties

£0 to £40,000

0%

0%

£40,001 to £145,000

0%

4%

£145,001 to £250,000

2%

6%

£250,001 to £325,000

5%

9%

£325,001 to £750,000

10%

14%

Over £750,000

12%

16%

 

Wales – Land Transaction Tax (LTT)

Purchase Price

Normal LTT Rate

LTT Rate for 2nd or Additional Properties

£0 to £40,000

0%

0%

£40,001 to £180,000

0%

4%

£180,001 to £250,000

3.5%

7.5%

£250,001 to £400,000

5%

9%

£400,001 to £750,000

7.5%

11.5%

£750,001 to £1.5m

10%

14%

Over £1.5m

12%

16%

Other Points to Note:

First Time Buyer but Buying Investment Property Rather Than Main Home

  • Normal tax rates will apply and not the higher rates

UK Resident Buying in UK but already Own Property Overseas

  • The additional levy on 2nd home rates for England (3%), Northern Ireland (3%), Scotland (4%) or Wales (4%) will still apply as you are buying a 2nd/additional property.

Overseas Buyer

  • An additional levy of 2% will be added to the above rates, so if you live outside the UK and already own a home where you live, you will pay the above 2nd Home rates (with the 3% or 4% levy) plus an additional 2% level.
  • The divolved governments of the UK really do not want non-UK residents buying up UK property.

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