Wednesday, October 30, 2024

Budget hit to holiday homes: Rachel Reeves hammers those buying second homes as she hikes stamp duty surcharge to 5% from TOMORROW

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Rachel Reeves used her Budget today to hike the stamp duty surcharge for those buying second homes.

The Chancellor announced, from as soon as tomorrow, those purchasing additional properties will have to pay a 5 per cent surcharge.

This is a two percentage point increase from the current level, with Ms Reeves boasting the extra cash earned by the Treasury would benefit other homeowners.

She told the House of Commons: ‘We are increasing the Stamp Duty Land Tax surcharge for second homes, known as the higher rate for additional dwellings, by two percentage points to 5 per cent from tomorrow.

‘This will support more than 130,000 additional transactions from people buying their first home, or moving home, over the next five years.’

Rachel Reeves used her Budget today to hike the stamp duty surcharge for those buying second homes

The Chancellor announced, from as soon as tomorrow, those purchasing additional properties will have to pay a 5 per cent surcharge

The Chancellor announced, from as soon as tomorrow, those purchasing additional properties will have to pay a 5 per cent surcharge

Property-buyers do not pay the additional rate if the home they are buying is their main residence and has already been sold.

But those who have not sold their main residence on the day they complete their new purchase have to pay higher rates. This is because they own two properties.

They can apply for a refund if they sell their previous main home within 36 months.

If it takes longer than 36 months to sell their previous main home, property purchasers may still be able to get a refund under certain circumstances.

Kersten Muller, property tax expert at Alvarez & Marsal Tax, said: ‘The increase of surcharge to 5 per cent on second homes and investment properties was not surprising and is aimed at supporting first-time buyers entering the market.’

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