SALES NEWS: Second home stamp duty surcharge ‘exemption period’ is extended
The government has clarified how the new ‘second home’ stamp duty three per cent surcharge applies to buyers.
The surcharge – which from April is levied on the purchase price of any additional home purchased for any reason, like a holiday home or buy to let flat – must also be paid by those who do not intend to keep their second property on a permanent basis, but who buy one house before they have sold their previous property.
However, Chancellor George Osborne’s latest Budget has made it clear that if such a buyer sells their original property within 36 months, they will be entitled to a full refund of the surcharge.
This is considered more than enough time for individuals to sell their original property, even in difficult market conditions. East of Exe can advise buyers on calculating the stamp duty due on a home purchased in these circumstances.