Sdlt Additional Rates On Acquisitions Of Additional Residential Property

On 1 December 2015, HMRC clarified to Practical Law Tax the additional rates of SDLT that will apply to acquisitions of additional residential property (for example, second homes and buy-to-let properties) with effect on and from 1 April 2016. If the total chargeable consideration provided for such a property exceeds £40,000, the entire consideration will be subject to SDLT at the following rates on a progressive basis:

• 3%: £0 - £125,000.
• 5%: over £125,000 - £250,000.
• 8%: over £250,000 - £925,000.
• 13%: over £925,000 - £1.5 million.
• 15%: over £1.5 million.

The announcement in the 2015 Autumn Statement was unclear and it transpired that practitioners and commentators had interpreted the announcement differently.

Consequently, following an update published by the Law Society (see Law Society, Autumn Statement: changes to SDLT), Practical Law Tax contacted HMRC for clarification.

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