Guest Editor – Stamp Duty Land Tax: pay less when buying more?

This month’s guest blog post comes from Marc Dorsett, Tax Director at Gepp Solicitors

Marc discusses Stamp Duty Land Tax for those with second dwellings, the recent changes to legislation and the potential savings to be made with some careful planning.

Stamp duty land tax (SDLT) is a curious tax. Stamp duty on house purchases dates back to the 1600s in spirit but there have been some changes along the way to get to where we are today. It is now a land transaction tax rather than a stamp duty and the current system was introduced by the Finance Act 2003.

Recent years have seen a fair amount of tinkering with the SDLT legislation. George Osborne, in particular, brought in many of the changes that affect property purchases in quite a large way. One of the biggest changes took effect from April 2016 and this was the higher rate for additional dwellings (HRAD), aka the 3% surcharge. HRAD applies to purchases by