Do You Pay Stamp Duty on a Commercial Lease?
SDLT on commercial leases can be very complex. Many tenants are unaware that Stamp Duty Land tax is payable on commercial leases – and may be...
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Patrick Cannon is an expert in Stamp Duty Land Tax and Stamp Duty, having worked for over 35 years in the field, both as a solicitor and barrister.
Buying a second or additional home usually carries a 3% surcharge on top of the standard rate of SDLT.
However, there are a number of exceptions and reliefs which could save you money. Patrick Cannon can guide you through the options, ensuring that you or your business are compliant with HMRC regulations.
If you have attempted to reduce the SDLT rates on an additional home, you may be facing an investigation or HMRC litigation for SDLT avoidance. Patrick Cannon offers his longstanding expertise to manage your correspondence with HMRC, defend you in a tax tribunal or bring about a case against a SDLT avoidance scheme provider.
To find out more about stamp duty on second homes, or to arrange a consultation – in person or via video call – contact Patrick Cannon here.
Second and additional residential properties in England and Northern Ireland normally carry a 3% surcharge on top of the standard rate of Stamp Duty.
SDLT on second homes is as follows:
|Minimum property purchase price||Maximum property purchase price||Stamp Duty Rate||SDLT on Second Homes|
|Over 1.5 million||12%||15%|
You can calculate how much SDLT you owe on a second home, using an online calculator.
There are a number of exemptions to the 3% rate of SDLT on additional homes. The following types of residential purchases are exempt from the higher rates of SDLT:
Social landlords and charities are also exempt from the 3% higher rates on additional residential homes.
If you buy a home with an annexe or if you buy more than one home in one transaction, or as part of a linked transaction, you can claim Multiple Dwellings Relief. This can represent a significant reduction in the amount of SDLT normally paid on additional homes.
If you think you might be exempt from the 3% extra tax on second homes or are hoping to claim Multiple Dwellings Relief, contact Patrick Cannon for advice on the legitimacy of your claim.
The Covid-19 SDLT Holiday does apply to second homes. The current rates – and when they return to the standard thresholds – are listed above.
Yes – you have 12 months after the disposal of your old main residence or if later 12 months from the filing date of the return for the new main residence, in which to claim a refund.
Have you overpaid SDLT? Made a mistake in your payment? Are you facing an HMRC investigation or litigation regarding SDLT on a second home? Are you seeking advice about mitigating your SDLT? Patrick Cannon will offer expert advice, file your claim with HMRC, manage any correspondence in an HMRC investigation, or defend you in a tax tribunal.
Patrick Cannon is one of the country’s leading experts in the subject of stamp duty land tax, especially SDLT on second homes. For all enquiries about SDLT on a purchase of second or additional homes, contact Patrick Cannon here.
Other SDLT Areas Patrick Can Advise On:
Your primary home. If you have other property interests, you must be able to prove that you intend to live in a new home to avoid paying the 3% surcharge on second / additional homes.
No – as you are married, or in a civil partnership, the purchase of an additional property while you still own your primary home or another residential property will be subject to the higher stamp duty rate.
No – inherited property is only subject to inheritance tax, not to SDLT.
Yes, the higher rate of Stamp Duty Land Tax (SDLT) is payable on lease extensions of second or additional homes – provided that the premium is £40,000 or more.