That dream holiday cottage. A smart buy-to-let investment. The perfect countryside escape with skylights and bi-fold doors. Buying a second property can be exciting — but before you sign on the dotted line, it’s important to understand the extra Stamp Duty Land Tax (SDLT) costs that could come with it.
If you already own a residential property and purchase another, you will usually have to pay an additional 5% SDLT surcharge on top of the standard rates. Whether it’s an investment opportunity or a future family retreat, the taxman is likely to want a share too.
The good news? If you are genuinely replacing your main residence and sell your previous home within 36 months of buying the new property, you may be able to reclaim the surcharge.
However, SDLT rules are not always straightforward. Issues involving inherited property, trusts, company ownership or multiple properties can quickly complicate matters — and unexpected tax bills are the last thing any buyer wants during a move.
That’s why seeking expert advice before committing to a purchase can make all the difference. With the right guidance, buyers can plan ahead, understand potential liabilities and move forward with confidence.
At Gepp Solicitors, our experienced property and private client teams are here to help you navigate the complexities of SDLT and ensure there are no unwelcome surprises along the way.
Before falling in love with the second set of bi-fold doors, make sure you know exactly what you’re signing up for.
Call: 01245 228125
Email: privateclientenq@gepp.co.uk
