Stamp Duty on 2nd Properties Increased

Rachel Reeves ©House of Commons

The Chancellor of the Exchequer, Rachel Reeves, introduced her first budget today, and it was a big one.

There was a big increase in tax on businesses and individuals with additional sources of income, and an increase in the level of stamp duty payable on second properties was also announced.

Currently there is a 3% surcharge on the stamp duty payable on additional properties, and this additional amount is paid on the whole purchase price.

The increased rate of stamp duty on second or additional homes, which is effective from tomorrow (Thursday 31st October 2024), will be 5% of the purchase price, an increase of 2 percentage points.

Levels of stamp duty on main home purchases remain the same although they are due to change in March of next year.

The normal way that stamp duty changes are implemented is that, if a property transaction has already exchanged contracts before the change date (31st October) then the lower rate of stamp duty would be payable. The government website states as follows:

“Where contracts are exchanged prior to 31 October 2024 but complete or are substantially performed on or after that date, transitional rules may apply.”

It also points out that Scotland and Wales have their own regulations regarding stamp duty:

“This measure does not apply to Scotland or Wales where devolved land transaction taxes apply.”

The increase in stamp duty is hoped to raise more than £1.2bn in tax up to 2029-30.

Stamp Duty on 2nd Properties Increased

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