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 those buying a second or subsequent property where there is a 3 per cent supplementary charge. Thus, the rate of SDLT on a second home costing up to £500,000 is now 3 per cent.
Previously, the rate was 3 per cent up to £125,000, then 5 per cent up to £250,000 and then 8 per cent 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.
Note, that there are different thresholds and rates of Land and Buildings Transaction Tax for properties located in Scotland and Wales.
If you are a landlord with properties with significant mortgages or loans, you may soon see a major increase in the amount of income tax you are expected to pay.
Contact your usual Beavis Morgan Partner if you would like to explore your planning options in more detail.