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bigduckontax, Accountant
Category: Tax
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Re: second home 3% tax query I currently own a commercial

Customer Question

Dear Sir or Madam,
Re: second home 3% tax query
I currently own a commercial freehold property - a small unit of 17m2, which by the law is uninhabitable. I am now in the process of buying my first residential property at £64,000. I was under the impression that the new 3% surcharge is applicable to second residential property only. However I have been told that I now need to pay it. I have looked at the government guidelines and am no clearer on this matter. Can you please advise?
Thank you in advance for your kind assistance.
Yours faithfully,
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with this question. The news that I have to impart will not, however, be to your liking.

Here is the advice from Wolters Kluwer:

'The Chancellor continued his attack on buy-to-let property owners with an announcement that a higher rate of stamp duty land tax (SDLT) will be charged on BTL portfolio and second property owners on purchases from April 2016 while the payment window for SDLT will be reduced to 14 days in 2017'

Please note the enhanced script. Unfortunately the enhanced 3% SDLT is applicable to second properties, not just second residential properties.

I am so sorry to have to rain on your parade.