Higher rates for additional properties
- In cases of claiming back the 5% higher rates for replacing your previous main residence you can apply for a refund if you sell your previous home within 36 months.
- If the home you are buying replaces your main residence, you will not be liable for the 5% surcharge, even if you own an additional property (such as flat you rent out) at the same time.
Rule of 6 – six or more
Buying six or more residential properties in a single transaction: where six or more dwellings are purchased in a single transaction, the purchaser can choose to treat all of the properties collectively as a non-residential transaction so that the non-residential SDLT rates below will apply. This can produce favourable results for non-resident company purchasers, as the non-resident surcharge does not apply to the non-residential rates of SDLT.
Rule of 6 To Save Significant Stamp Duty
Company A – Investing in UK residential properties. Buying Six or more residential properties (single transaction) – Commercial rate of Stamp Duty appliesContent goes here
Rates if you’re not a UK resident
- If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase, you are “not a UK resident” for the purposes of SDLT.
- You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland on or after 1 April 2021.
- Individual buyers can get a refund of the 2% surcharge if, after the purchase, they are present in the UK for at least 183 days during any continuous 365-day period that falls within the 2-year period of 364 days before and 365 after the effective date of the transaction.
- If you’re buying the property together then as long as you are married and not separated if one of you is UK resident, then you are both treated as UK resident in relation to the transaction.
- Buying with someone else – if any of you individually are non-UK resident in relation to the transaction, then all buyers are treated as non-UK resident in relation to the transaction.
- If you’re married, then as long as not separated, if one of you is UK resident in relation to the transaction then you are both treated as UK resident in relation to the transaction.