Additional Residential Stamp Duty

In 2016 an additional rate of stamp duty was introduced for residential property purchases to try and curb the purchase of Buy to Let properties so that first time buyers might get a better chance of purchasing properties on the lower end of the property ladder.


The rules that were introduced then specified that if you are buying a property and you already own or part own a property, or if one of you as joint purchasers already own a property and the property that you are purchasing is not going to be your main residence then you will have to pay additional stamp duty on that purchase.

You will also be considered as owning another property if one of you as a married couple or civil partnership already owns a property.


There are some exceptions to the rule about paying the additional amount. The main exception that will most likely apply to the majority of purchasers is that if you are replacing your main residence, and the sale and purchase are completed on the same day, then you will not have to pay the extra amount even if you own other property.

Another exception is that any property under £40,000 is excluded from the additional stamp duty payment.

Further exceptions include the type of property including excluding the purchase of houseboats.

Amount of Additional Stamp Duty

The amount of additional stamp duty that is payable if you are liable to the tax is 3% of the total property price. You should note that this is ON TOP OF the standard residential property stamp duty rates that may also be applicable.

The standard rates are tiered whereas the additional rate is payable on the whole purchase price.


In order to calculate the total amount of stamp duty payable, you can use our online stamp duty calculator. Check out the second section which will calculate the total amount payable including both the standard and additional amounts.

Posts on Additional Stamp Duty

You can find out further information, including questions about additional stamp duty and when it is payable, by checking out our archives on 2nd property stamp duty.

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