Stamp Duty Cut also Benefits Buy-to-Let Landlords

Although the temporary increase in the Stamp Duty Land Tax (SDLT) threshold to £500,000 was aimed at those buying their main residence, it also benefits landlords buying a second or subsequent property where there is a 3% supplementary charge. 

The rate of SDLT on a second home costing up to £500,000 is now 3%. Previously, the rate was 3% up to £125,000, then 5% up to £250,000 and then 8% up to £825,000. 

So the SDLT on a second home costing £400,000 is now £12,000 compared to £22,000 if the purchase had completed before 8 July 2020. 

Please note that there are different thresholds and rates of Land and Buildings Transaction Tax for properties located in Scotland and Wales.